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CHINA IN LAW AND COMMERCE

J^^^^

CHINA

IN LAW AND COMMERCE

> BY

J

T. R. JERNIGAN

/,

THE MACMILLAN COMPANY

LONDON: KACMIIXAN ft CO., Lxn.

1905

All rigkit ni§ t99 d

COPTUOBTf 1906,

bt the macmillan company.

Set up and elcctrotyped. Published May, igoS-

J. 8. cubing ft Co. - Berwick ft Smith Co.
Konrood, Mas., U.S.A.

PREFACE

In its administration the government of China is des^
potic and democratic. Practicallj each province exists
as an independent unit and is sufficient unto itself, but
in theory the power of the Emperor is unlimited.

It would seem impossible for anj government to endure
long when such antagonistic elements entered into its
administration, and jet China is the oldest empire of
history.

While the decrees of the Emperor are received and
promptly executed by the provincial authorities, there
have been few emperors of China who proved bold enough
to persist in disregarding public opinion in a province.

I n China law is founded on custom, and there are as
many different customs in the Empire as there are prov-
inces ; and frequently in the same province customs relat-
ing to important public and private business are found
to differ materially.

As the building of the governmental fabric proceeds
from the family unit and not from the central authority
at Peking, it is more apparent, therefore, why custom is
so influential a factor in all things Chinese.

The customs of a family are mainly the customs of the
Empire, and before the inner history of China can be

I

Vi PBEFACB

understood there must be a careful studj of the family

lifelrf~tfar- poopl o,

In accordance with the above view the following papers
were written to indicate the more influential agencies in
the law and commerce of China ; and when mj own ob-
servation and experience have failed to satisfy me, I have
consulted the standard authorities named in the text, in
order that what I have written should at least merit con-
fidence because of its substantial accuracy.

T. B. JERNIGAN.

Shahokai, Gkota.

CONTENTS

PAOB

L Physical Features and Origins .... 1

n. GOYERKMBNT 83

m. Law 70

IV. Family Law Ill

y. Tenure and Transfer of Property . . 182

VL Taxation 154

Vn. Courts 176

VIII. Eztra-territoriality 193

IX. Guilds 205

X. Business Customs 222

XI. Banks 275

XJL Weights, Measures, and Currency .... 201

XHL Land Transit 809

XIV. Water Transit 834

XV. Railway Transit 869

897

Tli

CHINA IN LAW AND COMMERCE

CHAPTER I

PHYSICAL PEATUBES AND ORIGINS

As I intend to write about the government and the
laws and customs of China, I will introduce the subject
with a brief account of the physical characteristics of the
Empire and of the origin of the Chinese. If an interest
should be felt in the system of government and the
administration of the laws, there would naturally be the
wish to know something of the country and the people.

China occupies in Asia a position similar to that of the
United States in America. The former looks out over
the Pacific as the latter do over the Atlantic, and both are
between the twenty-fifth and fortieth parallels of north
latitude. It is due to this fact that there is much resem-
blance between the two in climate as well as productions.

The climates of both are distinctly continental. The
distinctions between summer and winter, especially in
the more northern regions of each, are extremely marked.
Both are well watered. The valleys of their great rivers,
amongst the largest in the world, contain areas of land
not surpassed in fertility elsewhere.

The territory of the United States extends across the
entire continent and has on the Pacific a seaboard of about
equal extent with that on the Atlantic. China, owing to
the greater extent, east and west, of the Old Continent,

B 1

2 CHINA IK LAW AKD GOMMBBGE

has a western frontier bounded bj vast deserts, which are
amongst the most unproductive on the face of the earth.
This fact modifies to a certain degree the climatic distinc-
tions, and bj introducing the phenomenon of the monsoon
brings it about that China, practically, has two distinct
climates : one, in summer, is that of the tropics, the other,
in winter, is actually north temperate. They correspond
in each case with a shift of latitude from ten to twelve
degrees south or north respectively.

The water system of China, compared with that of the
United States, is materially different. Instead of the
main drainage of the country being directed from north
to south, the rivers in China mostly flow from east to west,
a fact which affects the products of the soil and the com-
munications and commerce of the land.

The three great commercial cities of China are situated
at the mouths of her three great rivers. There is Canton,
with its distributing port of Hongkong, at the mouth of
the Pearl River, which communicates with the important
provinces of Kwangtung and Kwangsi ; Shanghai, at the
mouth of the great river Yangtse, which communicates
with the entire centre and southwest ; and, lastly, Tientsin,
at the mouth of the Peiho, which opens up water com-
munication with the whole of the metropolitan province
of Pechili, and from it, by weU-beaten tracks, with the
entire northwest.

Still farther to the northeast, outside the limits of China
proper, and situated at the mouth of the Liao River, is
the growing port of Newchwang, which must not be
omitted from any account of China. This port affords
an outlet for the fertile country of Manchuria, which,
although geographically and geologically forming a sepa-
rate region, cannot commercially and politically be dis-
cussed apart. Although China cannot be considered a

PHYSICAL FSATUBES AND ORIGINS S

mountainous country, few of its elevations rising above
five thousand feet, jet not one of the provinces is without
its mountain chain. But these are seldom much higher
than from sixteen hundred to twentj-five hundred feet,
though they are very uniform in structure and appearance.
For the most part these mountain chains are composed of
palaeozoic rocks, limestone, or irregular sandstones, with
cones of gpranite or other hypogene rocks. The direction
of these chains is very uniform, running in all the prov-
inces from Szechuan eastward in lines trending from a
few degrees south of southwest to northeast.

The rivers, Rowing in a general direction from west to
east, have to submit to the superior influence of the moun-
tain ranges, and run alternately toward the northeast and
southeast, as their courses lie in the synclinal, or find a
breach at right angles with the strike. This in turn leads
to the somewhat chess-board arrangement of the outlines
of the provinces, though in the majority of cases these
latter are found to consist of a great central depression
surrounded by mountain chains of no great altitude,
the watershed of which is also the boundary of the
province.

Hence it occurs that for the most part each province
forms a separate basin, and is marked not only by its own
water system, but by its characteristic ethnological fea-
tures. Thus the inhabitants of Kiangsi are clearly dif-
ferentiated from those of Hunan, while both types are
readily distinguishable from those of Kwangtung or
Kwangsi. In a less degree the fauna and flora of the
several provinces have their distinct characteristics, and
this, there is little doubt, has immediately contributed to
the gprowth of the large amount of interprovincial com-
merce, which in all periods has been a marked feature of
the Chinese as a nation.

4 CHINA IK LAW AND COMMBBCB

From a series of like causes, also intimately connected
with the geology of the country, the physical aspect of
north China has come to differ widely from that of the
south. While south of the Yangtse the plains and valleys
are filled with alluvial formations, which constitute the
surface soil of the land, and whose deposition may be
traced to causes still in operation, the plains and bottoms
of China, north of the same line, though apparently simi-
lar in situation, are covered with a remarkable deposit,
in no respect alluvial, known to geologists as loess.
Again, while the difference in level between the surface of
the alluvial delta of the Yangtse and the plains of Szechuan
is barely discernible, even with the aid of the barometer,
the plain of Kansu in the extreme northwest rises fully
three thousand feet above the coast-line of Pechili. The
general aspect, the products both animal and vegetable,
the drainage system, and the means of locomotion differ
widely, and as a consequence the history of north China
has been materially influenced and forced into develop-
ments extremely different from those of the south.

The one main exception in south China has been the
province of Yunnan, which is situated at the extreme
southeast angle of the Tibetan highlands, where these
elevated mountain masses come in contact with the moun-
tain system of China referred to. Yunnan forms a distinct
mountain plateau. Its valleys are filled with deposits
that are the direct result of the local wear and tear of its
own mountains, and hence differ from the alluvial plains
of south China as much as from the loess-clad uplands of
the northwest. The political connection of Yunnan with
China is also much more recent than that of the other
provinces, prior to the thirteenth century belonging to
the political system of the Indo-Chinese Peninsula.

Historically, north China is older than south China.

PHT8I0AL FBATUBBS AND OBIQINB 5

From whatever quarter of the world the settlers originally
came, it is a historical fact that about fourteen centuries
before Christ these settlers, to whom is due the civilization
of northern China, were in occupation of the extreme north-
west along the upper waters of the Hwang-ho in what now
constitutes the provinces of Kansu and Shensi. The geo-
graphical peculiarities of this district had subsequently a
powerful effect in shaping the infant state.

At that period, and for many centuries after, the land
wore a different aspect from what it now presents.
The hillsides were abundantly covered with primeval
forests of stately trees, while the low grounds, where the
soil consisted of rich loess, as yet comparatively little de-
nuded, were covered with herbage interspersed with clumps
of mulberry, elm, chestnut, and other trees, which in these
latitudes associate in clusters. As the forests on the
liillsides had not yet been cut down, the country was
more equally watered, nor were the extremes of climate
then experienced in these regions of such intensity as at
present. The forests abounded in wild game, bears, oxen,
deer, foxes, beavers, pheasants, etc. Over the plains
wandered herds of elephants, rhinoceroses, or the tailed
deer, a few solitary descendants of which are still to be
found in the neglected park at Peking, or scattered through
the menageries of Europe, while from the mulberry trees
depended long skeins of silk from the uncultivated silk-
worms that feasted unmolested on their leaves. The
native inhabitants were gentle, pastoral tribes who led
uneventful lives amidst pastoral surroundings. They were
dark-complexioned, had long black hair, and were, on the
whole, not unlike many of the present Tibetan peoples of
the Kokonor, whom they likewise resembled in their man-
ners and stage of civilization. The newcomers were, on
the contrary, fair-haired, with light blue or gray eyes^

6 CHINA IK LAW AND COMMERCE

They were agriculturists, pure and simple, and despised
the ways of their pastoral predecessors, on whom they
waged incessant war. Agriculture with them was more
than an art, it was a religion; and this fact has in all
succeeding ages markedly affepted the products, and even
the face, of the land.

These newcomers on taking possession proceeded to
clear the forests. So deeply rooted was their distaste for
pastoral life that, except for the purpose of drawing the
plough, cattle-rearing was discouraged, and even sheep
were regarded with disfavour. A war of extermination
was carried on against the feral inhabitants of the woods
and pasture lands. The only tree whose cultivation was
encouraged was the mulberry, the leaves of which were
required for the feeding of the silkworm; and the culti-
vation of silk at an early date became one of the chief
industries of China. Unfortunately for the land itself all
these new arts were cultivated to an extreme which, car-
ried on for thousands of years, has changed both the
surface and the climate of north China.

The destruction of the hill forests has left the hill-
sides bare and barren. Their covering of herbage has
been washed away from their unprotected surfaces, and
this denudation has reacted on the climate, inducing long
periods of drought which, alternating with destructive
rainfalls, have proved injurious to the well-being of the
inhabitants. In the plains the discouragement of cattle-
rearing and the want of food have led to the practical
obliteration of the grasses which once clothed the surface
of the loess.

True to the instinct engendered by centuries of agricul-
ture run wild, the modern peasant, without fuel other
than the droppings of his few domestic animals, or the
scant grass which he finds growing by the wayside, does

PHYSIOAL FBATUBBS AND 0BIQIN8 7

not hesitate to grab up by the roots the plants that for
him have no other conceivable use than as substitutes for
fire-wood.

The result is as disastrous as the destruction of the
forests. The surface of the light soil is deprived of
its natural protection, and as the period of the spring
ploughing is coincident with the windy season, the yearly
recurring gales carry away the superficial soil in what may
be described as streams, as if an ever acting planing-
machine were annually engaged in removing the surface
and carrying the shavings to the nearest ravines, whence,
in turn, by the floods of the early summer, the shavings
are carried out into the Oulf of Pechili, which they are
rapidly filling up. Even independent of the aqueous
denudation, which is characteristic of all the rivers of
north China, and which gives its name to the Hwang-ho,
literally Yellow River, one of the most marked phenomena
in northern China is the perpetual recurrence of dust-
storms which, especially in the spring months, often darken
the air for days at a time. One of these dust-storms, it has
been calculated, bears out to sea several million tons of
the fine loess soil, and as several occur in the course
of the year, the annual waste of the fertile loess is a
phenomenon beginning to have its deleterious effect, in
addition to other sources of degeneration in northern
China, written of above.

Similar causes are at work throughout the entire conti-
nent of Asia from the Persian Oulf to the Yellow Sea.
Everywhere is met the same phenomenon of a gradual
deterioration of climate, accompanied by destruction of the
ancient forests and a retrocession of the cultivated area.
In these respects north China partakes of a continental
rather than an isolated character. The entire belt between
the thirtieth and forty-fifth parallels, the long strip lying

8 OHINA IK LAW AND COMMBBCB

between the tropics and the true temperate zone^ partakes
all through of one character. To seek the causes at work
one must go back beyond the times of history or even the
first introduction of man.

In times geological, by no means remote, the whole of
this vast belt was in fact represented by a great Asiatic
Mediterranean Sea whose currents brought a continual
stream of warm water to lave the shores of the northern and
southern lands, both covered by rich forests, and each
inhabited by its own peculiar mammalian fauna. There
was, in fact, in north Asia no glacial epoch, and the old
pre-glacial mammals of Europe long sunrived in what are
now the frozen tundras of Siberia.

When the early immigrants first arrived in north China,
they found the land still occupied by the mammoth and
the woolly rhinoceros ; allusions to both of these are
numerous in the older Chinese classics, more especially in
the Shi King and the Tso Chwen. North and south China,
in the period immediately before the arrival of man,
belonged to two separate continents, and this circumstance,
and this alone, can account for their marked physical dis-
tinctions, whether climatic, structural, or ethnological.

Politically, the distinction between north and south
China was, till the thirteenth century, as marked. In
Marco Polo's time, while Cathay was the usual title for the
northern section, the southern was known by the ancient
name of Manzi or more correctly Mantsz. The distinction
was an ancient one, and dates back to a period before the
foundation of the Chinese Empire. It was not till the
time of Ts'in Shi Hwangti, in the third century B.O., that
the peoples forming the ruling race in China crossed the
Mien Shan, the name then applied to the mountain masses
separating Szechuan from the basin of the Hwang-ho and
prolonged to the eastward through the greater portion of

PHYSICAL FEATURES AND 0RIGIK8 9

what is now the northern part of the province of Anhwei.
Prior to this inroad of the great conqueror, whilst the
north of this line was under the dominion of the immi-
grant tribes of the Cheos, all south of the Mien range was
under the rule, direct or indirect, of the kings of Ch^u, who
themselves were by race Mantsz. These Mantsz were
an Indo-Chinese race and owed what civilization they
possessed rather to south India than to their neighbours
in north China. The powerful Emperors of the early
Hans had succeeded in bringing southern China, so far as
the NanUng range, under their dominion, bat after the
dynasty came to an end, China for many centuries went
back to her former state of division.

Once more in the early part of the seventh century the
great ruler Li Shimin, founder of the house of T'ang, suc-
ceeded in uniting north and south again, to part, however,
on the fall of the house, after which, with a short interval
during the southern Sung, the old state of division was
restored, to continue till the thirteenth century, when
Kublai, at the head of his Mongols, finally united north
and south, a condition which has survived till the present
day. Kublai did even more, for to his arms is due the
incorporation into the Chinese Empire of the g^at prov-
ince of Yunnan, while temporarily he extended its rule
over Burma and a large portion of the Indo-Chinese
Peninsula.

For the greater part of their history, then, north and
south China have existed as separate and independent
states, and it is necessary for a due understanding of the
modem Chinese problem that this fact should be recog-
nized. It is quite true that much intermixture of north
with south has taken place in comparatively modem times,
when forced movements of the populations have by whole-
sale modified the inhabitants of one or other of the prov-

10 CHINA IK LAW AND COMMEBCS

inces. Thus during the time of the Mongol dynasty large
settlements of northern immigrants took place in Yunnan.
The commencement of the present dynasty was, however,
marked by the greatest of these transplantations. During
the troublous times, at the close of the Ming rule, so great
was the anarchy, and so fearful the destruction of human
life in the great province of Szechuan, that on the estab-
lishment of settled government, under the Manchu rule, the
country was found to have relapsed almost to a state of
nature, and large districts were found waste and practi-
cally depopulated. To fill the void the new government
imported an almost entirely new population from the
northern provinces of Shensi, which it settled on the waste
grounds. The result is seen not only in the physique of
the inhabitants, but is marked in the spoken dialect which
is now essentially northern in its connections. About the
same period, from similar causes, the population of Shan-
tung had become so attenuated that immigration from the
northwest was invited. The result here again was not
only a modification of the language, but the loss amongst
the modern inhabitants of nearly all the old traditions of
this classic land, in the old days the most advanced of the
entire hegemony.

Even in modern days the same causes are at work grad-
ually unifying the population of the Empire. Between
1859 and 1865 the whole of southern Kiangnan had be-
come depopulated, between the Taiping rebels on the one
side, and the bands of semi-savage Hunan troops sent to
repress the movement on the other. When the rebellion
was suppressed, these troops were settled in* large numbers
on the waste lands, as in the former cases referred to ; the
result has been a very considerable modification of the
speech as well as the loss of many of the old traditions.

The great distinction, however, between north and south

PHYSICAL FEATUBES AND ORIGINS 11

depends not on the characters and affinities of the peoples,
but on the character of the land and the nature of the soil.
Climate and soil alike point out south China as essentially
a rice-growing country, both equally interdict its cultiva-
tion to any extent in the north. Perforce the southern
Chinese is a rice-eater, with all the peculiarities attaching
to the rice-eater elsewhere. The northerner, compelled to
live on his more substantial crops of wheat, pulse, and
millet, has developed a stronger physique as well as a less
nervous organization. There are thus at work in modern
China two strongly contrasted factors, one dependent on
the nature of the climate and soil, making for divergence;
the other political, tending toward unification of the
population.

As stated at the Commencement of this introduction,
the exposed rocks throughout the eighteen provinces are
in the main of palseozoic age. These rocks all through
have undergone much subsequent change, and generally
are to be found much altered and denuded. For the most
part, as might have been anticipated from its former con-
tinental exposure, south China has undergone a longer
period of denudation ; hence the lower strata and the sub-
jacent crystalline rocks are more extensively exposed,
while the upper rocks, especially the coal measures, occur
in smaller and more widely separated localities.

Owing to the long-continued submergence of north
China, the upper members of the palasozoic series have here
undergone far less denudation, and from this fact it results
that the true coal measures are far more widely distrib-
uted and cover far greater areas than those south of the
Yangtse. This fact has always had an important bearing
on the resources of the north. During the Mongol and
Ming dynasties mining, if not entirely encouraged, was
permitted to go on wi^out molestation from the govern-

12 OHINA IK LAW AND COMMEBCE

ment, and large quantities of coal and other minerals were
raised in all the northern provinces to the no small advan-
tage of the people at large. With the advent of the
present Manchu dynasty another policy supervened. The
Manchus never attained to the entire confidence of the
people whom they had conquered, and this mistrust they
showed in various ways, as in the sumptuary regulations
which they forced on an unwilling people. From similar
motives the working of the mines was discouraged, and as
far as any new works were concerned, sternly repressed, to
the no small loss of the Empire at large. At the present
day the investigator finds in all the northern provinces
extensive remains of former workings, and to his inquiries
the same answer is always returned that they were old
Ming workings forbidden under the present regime.
Occasionally the distaste for mining took a different form,
and stone tablets are seen setting forth the forcible closure
of certain mines, and orders under heavy penalties forbid-
ding their reopening.

Coal in workable quantities occurs in all the northern
provinces. In Shantung it is to be found in basins more
or less detached in most of the prefectures, of which Tsi-
nan, Tsingchow, Taingan, and Ichow may be specially
mentioned, the coal in Taingan-f u being apparently of the
highest class. In Chili, wherever the fringing mountain
ranges rise over the level of the plain, alluvial or loess,
coal-mines worked under the unfavourable conditions of
absence of proper machinery and official disfavour are to
be found. Amongst those partially explored may be
mentioned the coal-fields of Wanping, a few miles north-
east of Peking, Pingting, and Tsechow. The coal-fields of
Tangshan, including the neighbouring workings of Linsse,
are being mined under an Anglo-Belgian company with
machinery of the most advanced modem type, and give

PHYSICAXi FEATURES AND OBIGIKS 18

satisfactory results to the proprietors. There is little
doubt that these measures, probably in most cases at work-
able depths, underlie the greater part of the plain of lower
Chili. The widest extension of the coal measures is, how-
ever, to be found in the great field of southern Shansi and
northern Honan, which will probably prove to be one of the
most extensive coal deposits. These deposits are already
being opened up, with foreign machinery and under foreign
inspection, by the Peking Syndicate, an English company
which has obtained valuable mining and railway conces-
sions in this province.

These coal measures are known to be accompanied by
valuable deposits of excellent iron ore. Though worked
for many centuries in their usual primitive manner ]i>y the
Chinese, they have not yet been taken in hand by the
syndicate, though arrangements are in progress to enable
it to do so.

Though not so well known as Shansi, Shensi also pro-
duces considerable quantities of coal and iron, especially
in its southern districts along the head waters of the
river Han. Europeans are practically unacquainted with
this coal-field, which, judging from the observations of
the Abbe David, must be of considerable extent and
importance. Farther west there are known to be large
areas of productive measures in Kansu, and these are
noticed as reaching into the extreme west of the province
and even into the New Dominion.

Although there is little prospect of these latter being
utilized in the near future, there is the possibility in every
part of their eventually becoming valuable assets. With
the gradual advance of north China, it will annually be-
come of greater importance to secure her communications
with the Far West. Geographical considerations point
to the great highway via Tungkwan as the only available

14 CHINA IK LAW AND COMMERCE

route, and the presence of important coal supplies at short
intervals all the way from Honan to Singan, and from
thence all the way to Kansu and Shacheo, seems to indi-
cate this as the future highroad from western Asia to
the heart of China. In practice, railroads have been
found the only possible means of traversing great deserts,
eliminating as they do the difficult question of time and
supplies. Should it eventually be found practicable to
cross the elevated passes over the Pamirs, the desert por-
tion of the track would be found to offer no insuperable
difficulty in the reestablishment of the ancient trade route
from west to east formerly opened up by the enterprise
of the great Chinese Emperor Wu Ti.

The widely extended palaeozoic formation of China ex-
tends up to the flanks of the vast elevated plateau of Mon-
golia, where it is succeeded by a great outburst of igneous
rocks. Along the junction, as is to be noticed in many
similar instances, there apparently occur indications of rich
metallic deposits. Amongst these may be mentioned cop-
per, which seems to have been formerly worked in several
localities till the mines were closed through the jealous
interference of the Manchu conquerors of China. Gold is
also known to occur in paying quantities in the sands and
alluvial deposits of the streams flowing from the Mongo-
lian plateau, while in several localities there are extensive
deposits of argentiferous lead ; the region, though practi-
cally unexplored, affords indications that a thorough
exploration would result in the discovery of a rich mining
district, which in the present condition of the country,
with its congested population, would be invaluable.

I have earlier in this introduction spoken of the waste-
ful system of agriculture adopted throughout north China,
and the circumstances under which it originated. The
surface soil throughout the whole of northern China may

PHT8I0AL FBATUBE8 AND 0BIGIK8 16

be described as loess, either first-hand or rearranged, and
between these two there is to be drawn a distinct line of
difference. The original loess is, in fact, rich in soluble
salts, principally of lime; in the rearranged loess along
the principal rivers, especially the Hwang-ho, these salts
have been for the most part dissolved out, and the result-
ing deposit is an almost impalpable sand, which offers no
resistance to the denuding effects of wind and water.
This is one of the main causes which have concurred to
increase the naturally wandering character of the rivers
of the region, and to detract seriously from their naviga-
bility. Except here and there for short distances, the
Hwang-ho, though one of the great rivers of the world,
is actually of no service as a freight carrier. From the
same cause, as well as from the loess in its lower course
being underlaid by deep beds of marine sands, the river-
bed has a tendency to leak, with the result that the size
of the river, and the body of water carried, continually
decreases from its entrance on to the plain of Honan till its
discharge into the Gulf of Pechili. For a like reason the
mouth is effectually closed by shifting bars and sand-banks,
so that no sea-going vessels can enter the channel.

The loess is in most descriptions of north China repre-
sented as affording a most fertile soil, producing without
manure abundant crops, and being answerable for the
undoubted productiveness of the plains. To a consider-
able extent this is true. It is certain, for instance, that
the use of manure is not required when the loess forms
the superficial soil, and the materials elsewhere preserved
with care for the fertilization of the soil are in the north-
ern provinces of China relegated to the baser use of afford-
ing argols for heating purposes. This seeming advantage
has, however, to be dearly paid for at the expense of the
soil itself ; in other words has to be provided out of the

16 CHINA IN LAW AND COMMERCE

capital of the land. The absence of all shelter for
the surface, whether from grass or trees, results in so
great and continuous wear of the surface that every year
a new deposit is exposed, the old being carried down to
the Gulf of Pechili by the joint action of the winds and
running streams.

This is the true explanation of the reputed special fer-
tility of the loess. The area of land available for culti-
vation is annually, in fact, diminishing, and the production
of useful crops becoming from year to year less. This
recession of the fertile lands is very noticeable in Shan-
tung, especially in the Tsinan prefecture, where the out-
liers of the limestone range to the south have been divested
of their former covering of loess, which has left behind only
the nodules once contained in its substance to mark its
former extension. The bare limestone rocks thus exposed
afford only a precarious existence to a few flocks of under-
sized sheep in contrast to the comparatively rich crops that
once covered their surface. A partial exception to this
gloomy condition of affairs is to be found in the districts
overrun by the Yellow River in its change of bed in the
year 1854. During the wanderings of the stream in search
of a new bed, it covered the low country with fine, almost
impalpable sand to a depth of from six to nine feet. For
many years, till in fact the sand commenced to break up,
the whole surface of the country was little better than a
sandy desert. Of late years, possibly from the oxidation
of the contained apatites, the soil has commenced to bear
heavy crops of wheat. Whether this new condition will
prove permanent remains, of course, to be seen.

All together the physical aspects of north China are in
strangely marked contrast with those prevailing south of
the Yangtse divide, and the contrast has been marked in
all previous ages by an equally marked historic and ethno-

PHYSIOAL FEATURES AND ORIGINS 17

logical divergence, only of recent centuries in process of
extinction.

South and central China to the northern verge of the
basin of the Yangtse described above, afford very different
conditions from those prevailing northward. If north
China belongs geographically to central Asia, south
China as clearly must be relegated to an Indo-Malayan
continent. We have here left the peculiar products of
the temperate zone, and its physiography and products
must be compared with those of the subtorrid zone rather
than with those of the northern continent. Geologically
the intimate structural rocks of south China belong to the
same great palseozoic series as those of the north, but
their subsequent history is very different. While north
China for ages was submerged under the great Asiatic
Mediterranean, south China formed part of the Indo-
Chinese continent. In consequence, as already stated,
the upper rocks, which in the northern lands were pre-
served from subaerial denudation, were in the south in a
great measure removed, and hence the coal measures
which in one case form so marked a feature, are in the
other either altogether absent, or occur only in widely
separated localities, and are in no instance of any wide
extent.

Though generally agreeing in character, south China
must, however, be divided into at least three distinct
areas, each marked by its own peculiar characteristics, —
that of the north, extending from the west of Szechuan
to the Yellow Sea; the great red sandstone basin of
Szechuan, once forming the basin of a self-contained sea;
and, lastly, the elevated plateau of Yunnan and its exten-
sion eastward through Kweichow and Kwangsi almost up
to the verge of Kwangtung. The Meiling range with its
continuations east and west may be considered as forming

18 OHIKA IN LAW AND COMliEBCE

the boundarj line between the first and third. Of these
regions Yunnan, abutting as it does on the great elevated
region of Tibet and the Himalayas, is marked by rich
metallic deposits, amongst which are to be noticed cop-
per, silver, quicksilver, and probably tin and antimony.
Throughout the remainder of the district, except in
Szechuan, metallio and other mineral deposits occur but
sparingly.

Szechuan, from its peculiar geological formation as a
once isolated sea, has its own marked peculiarities, the
most remarkable of which are its extensive brine wells,
from which, from a depth often exceeding three thousand
feet, salt is pumped to the surface. Petroleum is also
met with in quantities in connection with the brine, and
will probably in the near future become an important
trade product. Coal is also found, but its position and
quantity have not been satisfactorily explored.

From its much .more southerly situation, as well as from
its moister climate and the abundance of the rainfall, south
China is very favourably placed for the growth of rice.
The fact, too, of the soil being almost exclusively alluvial,
and subject to but slight denudation compared with the
loess of the north, adds to its adaptability. The rich
valley bottoms produce heavy crops of rice and other
tropical and semitropical grains, while, taking advantage
of the plentiful supply of water furnished by the perennial
streams everywhere flowing from the mountainous uplands,
the sides of the hills are for the most part terraced up to
their summits. The knowledge of Chinese agriculture
possessed by the West was for the most part, in the first
instance, acquired from the pictures on rice paper obtained
at Canton during the early days of European intercourse,
and it is not surprising that the traditional views of China
and the Chinese held in Europe and America, till within the

PHYSICAL FSATUBES AND ORIGINS 19

last twenty or thirty years, have been mainly founded on
China as seen or pictured in the extreme south, and mainly
in the immediate neighbourhood of Canton. It was,
indeed, only as a result of the war of 1859-1860 that
north China was opened to foreign intercourse, so that the
want of appreciation of the distinctions between north and
south need hardly be a subject for wonder. I have written
above of the absence in north China of means of water
communication, or indeed of any proper system of com-
munication whatever. This is curiously exhibited even
in the common speech. The Chinese word for road is Zu,
but luj in the sense of a road, is hardly ever used north of
the Yangtse. In the south, goods and agricultural prod-
uce are carried along narrow, made roads on men's
shoulders ; in the north, both are generally conveyed on
carts drawn by horses or mules, but the route on which
they are conveyed is known as tao^ literally way; the
differenqe is noteworthy as exhibiting the distinction
between the peoples. These ways are never made ; they
are obliterated every year when the farmer ploughs up his
fields. In the spring when traffic opens, the carters make
straight tracks across the ploughed fields toward their
destination without reference to the wishes of the farmer,
and every year the struggle between cultivator and way-
farer is renewed, the farmer's legal right to plough up his
land being balanced against the carter's equally undoubted
right to cross the land in any direction most suitable.
The result of this chaotic condition of affairs can be easily
forecast. Practically, except in a few localities where the
former Emperors constructed special highways for some
particular end, there are no roads, but merely ways in
north China. This, combined with other retarding influ-
ences mentioned above, has had a disastrous effect on the
well-being of the land. Toward the latter end of the

20 CHOTA IN LAW AND GOMMEBGE

last century occurred one of those prolonged series of
droughts to which the country is periodically liable. The
sufferings, which under ordinary circumstances must have
supervened, were aggravated by the condition of the com-
munications, which were so bad that it was impossible to
convey relief over a distance of more than a few miles, the
feed of the animals using up all the provisions that
could be carried. The result was that in certain dis-
tricts, especially in Shensi, which were favoured with a
sufficient water-supply, grain was so abundant as to be
almost a drug, whilst in others, not more than forty or
fifty miles distant, the unfortunate people were suffering
all the horrors of an unrelieved and unrelievable famine,
owing to the want of even the most primitive roads. The
effect of these reiterated famines, which culminated in the
last decade of the century, was to establish a curious
traffic in children, especially infants ; merchants in human
flesh regularly traversed the famine districts, buying chil-
dren for a mere song, their parents, who subsisted on wild
roots or offal, being only too happy to accept any offer
which gave a chance of life to their offspring. It will be
readily recog^nized that these conditions paved the way
for the entrance of railways into northern China, and also
account for the fact that while the primitive populations
undoubtedly view with jealousy the advent of the for-
eigner in person, the construction of railways has for the
most part been eagerly welcomed.

In south China, owing to the abundant rainfall, the
lower slopes of the land generally, and the absence of the
thick, superficial clothing of loess, which covers with a pall
of peculiarly penetrable soil the entire surface of the north,
the rivers flow perennially, and when they attain to any
size, become navigable. The main work of transportation
is here carried on by water, with the concomitant advan-

PHYSICAL F£ATUBES AND ORIGINS 21

tage that it is cheap. Such famines as occur in the north
are here practically impossible, as, except in the worst of
years, food can always be obtained for money, a thing not
always possible in the worse-served provinces of the north.

In yet another feature north China contrasts badly with
the south, and this is in the universal want of timber.
The wasteful habits of the people have ended, as explained
above, in the entire obliteration of the forests that once
clothed the rising grounds ; the want is very severely felt
in the economic condition of the people, and is of course
intensified by the difficulties of carriage. Wood, even
for the purpose of making such simple articles of furni-
ture as are needed in the daily life of the most primitive
of populations, is practically not to be had, and men
are put to strange straits accordingly. The ordinary
dwellings of the people are formed of mud or wattles,
usually without windows, owing to the scarcity of wood,
and frequently without doors other than those of reeds.
The general tone of the inhabitants is, of course, lowered,
owing to the enforced discomfort of their homes, and so
one thing reacts on another toward the degradation of
the people, morally as well as physically. If it be true
that the physical causes of this deterioration are for the
most part natural, and therefore to a certain extent inevi-
table, it is no less true that the deterioration of both land
and people has been materially aided, if not directly
brought about, by the folly of the people themselves.

Nothing practically is known of the origin of the
Chinese. They should not be classed with the so-called
Mongols, but considered as more probably an offshoot of the
great Malaysian family. The origin of this family dates
back to geological rather than to historical times, and is
anterior to the present distribution of continent and ocean.
What is more, the continent of Asia in the later geological

22 CHINA IN LAW AND GOMMSBCS

ages extended far into the Pacific Ocean, and included
not only the Malaysian Peninsula, but the islands of
Sumatra, Java, Borneo, the Philippines, and probably For-
mosa. These lands were inhabited by at least two marked
families of men, — the Melanesian negroes, and the Yellow
Paresdan peoples. The latter included Indo-Chinese,
Malaysians, and possibly Malays, as well as the inhabit-
ants of China up to the thirtieth parallel of north latitude.
The whole of northern China was then under water as
far as the highlands of Mongolia, with the exception of
certain islands, represented by the higher lands of Szechuan
and parts of Shansi.

The Chinese as Chinese are thus an extremely ancient
people. They were not of course called Chinese, that be-
ing a comparatively modern name, but consisted of many
different races who by degrees have been conquered by the
more northern peoples. Most of these conquests have
taken place within historic times. The process is not
yet completed, as remains of the aboriginal tribes are to
be met with as far south as the present province of Fukien,
and in many parts of Ewangsi, Yunnan, Kweichow, and
Szechuan they still constitute the major part of the
population.

It will thus be seen that the modem term of Mongolian,
as applied to the people of China, is in every respect a
misnomer, and has materially conduced to a misunder-
standing of the entire Chinese question.

While the peoples inhabiting the China of to-day mainly
derive their origin from a southern and eastern strain,
the earliest inhabitants, of whom traces may be found in
northern Asia, belonged to a di&tinct family of men who
at one time seem to have extended over central and
northern Europe, and for whom, following the lead of
Herodotus, the title of Arimaspians may be suggested.

PHYSICAL FEATUBBS AND OBIGIKS 28

Of these the Huns, who during the fourth and fifth
centuries overran the northern part of the Roman Empire,
may be taken as typical representatives. They were
swarthy and black-haired, with projecting eyebrows, round
heads, high cheek-bones, flat faces, retreating foreheads,
and little or no hair on the surface of their bodies or on
their chins. They seem to have been divided into two
main categories, — west were the Oghuz, in part the
ancestors of the Turks; east the Ushwars, from whom
descended, amongst others, the modern Manchus and
Koreans.

Between the two, and reaching from the Danube as far
east as the one hundred and twentieth meridian, was
another of the great families of mankind, more distinctly
differentiated perhaps than either. They constituted the
great blond race by modem ethnographers classed under
the general title of Aryans, a title in some respects as
misleading as the other. The Aryans formed only a sub-
section of the family, which consisted of three main divi-
sions, — the Aryans proper, with the subsection of the Ira-
nians ; the Sarmatians ; and the Gothic or Getic people,
with its subsection of the German tribes.

All these three, Malaysian, Arimaspian, and Aryan, have
had their effect in moulding the great mass of humanity
which makes up the Chinese nation of to-day. To under-
stand this, one must go back to the very beginningps of
history, or, indeed, beyond history proper, to the border
land of myth. The original inhabitants of south China,
so far as their family relations can be traced, belonged to
what has elsewhere been called the Paresean, with the in-
tention of including under that term not only the southern
Chinese, but the inhabitants of the Indo-Chinese Peninsula,
and those extra-continental peoples who by some ethnog-
raphers have been called Indo-nesians, an objectionable

24 CHINA IK LAW AND COMMEBCB

name in its way. But these people have been mixed
even before the dawning of history with external tribes,
Tibetans, or rather Himalayic, and Manyak (Mantsz).
There seem traces also in the earliest traditions of the
peoples of the Yangtse basin that some other strain, more
or less remotely connected with the former Aryans of
central Asia, must have sent offshoots as far as the great
Yangtse delta.

The great Aryan irruption is of later date. The tradi-
tion survives in the Shu King in the K'enli, or conquest of
Li. This resulted in the Limin (or Aryan men) occupy-
ing the lands of the northwest of China, where they
formed several principalities, the chief of which was that
of the Cheos. The story forms the main refrain of the
so-called " Book of Odes," which were not " odes *' at all,
but were a selection from the old ballads of these tribes.
This collection is due to the intense love for archaeology
possessed by Confucius, who was instrumental in recover-
ing and handing down to posterity not only these ballads,
but the annals of his native state Lu, forming now a part
of Shantung. A close comparative study of the ballads
shows not only that their original language and mythology
were closely connected with those of the Sanscrit-speaking
peoples of northwestern India, but also that their social
status and their institutions were almost identical.

To trace these peoples still further one will have to go
to a still older (in parts) record, the Zend Avesta, the
scripture of the old Parsees. The opening chapter de-
scribes the happy realms of King Yi-ma, the Airyano
Vaejo, situated on the upper waters of the Oxus and
Jaxartes. Yi-ma became proud, and as a punishment was
attacked by the Azhi Dahaka, the Oghuz tribes of north-
ern Asia, who drove the original inhabitants from their
ancient seats. There can still be traced many of them, —

PHYSICAL FBATUBES AND OBIOINS 25

the Oeta, the ancestors of the Goths and the Germanic
peoples; the Sarmatians, or Eimmerians, who form the
majority of the Slavonic peoples of Russia, Bohemia, etc. ;
the Salyans who, as Hellenes, settled in ancient Greece;
and the Iranians and Aryans who migrated to Persia and
northwest India respectively. It was a branch of the last
who, under the name of Cheos, settled in northwest China
and gradually spread to southern China some fourteen to
fifteen hundred years before Christ.

These last brought with them their language, their ideas
of government, and their religion, and it was by them that
civilization, such as is seen to-day, was introduced into
China. They were probably few in number compared
with the old Pare»an inhabitants, and they in conse-
quence gradually lost their physical characteristics. Origi-
nally they were a fair-haired people, to which there are
many allusions in the old ballads of the Book of Odes,
but by admixture with the native tribes they gradually
lost their distinctive features. How fair they were, and
how advanced their art, the following lines closely trans-
lated from the ancient Book of Ballads will indicate : —

«< Fair was her hair ; in folds her gannents hung —
All gem-embroidered o'er her shoulders flung.
Our lady bright, of Tsi's great house the pearl,
Fit bride, I ween, were she for Wei's proud earL
Fairest of all amid her damsels fair,
WeU mated with a prince of gifts so rare,
Companion fittest for a king.

^ Taper her fingers as the sprouting leek ;
like clotted cream her swiftly mantling cheek ;
Her shoulders fairer than the cynthia's sheath ;
Than melon seeds more white her pearly teeth.
Her brow cicala-like ; eyelashes fine
As silk moth's horns her orbs outline ;
Well limned her sparkling eye."

The Skih Jen. Shi King, L v. 8; st 1, 2.

26 GHIKA IN LAW A^fD GOMMBBOB

At first they called themselves Aryan men, but the
descendants whose language had become corrupted pro-
nounced this Lai man, and, forgetful of its old meaning,
gradually transformed it into ^^black-haired man."

The Lis, modern Limin, were not, however, destined to
be left in peace in the new land which they had made their
home. Their old enemies, as has been seen, were known
among the ancient Aryans as Azhi Dahaka, the ^^ Gnawing
Snake " ; in the new land their memory is preserved in the
name of Dik, by which they are known in the earliest
Chinese records. Of these the most formidable tribe was
that which in modem Chinese appears as the Hiung Nu,
but which anciently called itself the Kara Nirus. From
about 500 B.C. to 200 a.d. this people established an em-
pire on the northwest of China, which contended with the
settlers on equal terms, and more than once almost suc-
ceeded in crushing out the new Chinese civilization.
These people were Turks of the purest type, and spoke a
language closely allied to that of the Osmanlis of to-day.

These Turkish tribes, Oghuz and Ushwars in type, after
the break-up of the great Chinese dynasty of Han, 220
A.D., when the Chinese Empire split into three or more
contemporaneous states, short-lived and continually at
strife among themselves, gradually obtained the ascendency,
politically and socially, in northern China. In the south-
ern portions of the Empire these dynasties continued to
be ruled by more or less pure Chinese sovereigns, while
in the north the foreign element became stronger and
stronger. Toward the close of the fourth century the
greater part of China is found submitting to the sway
of a Turkish dynasty, known as the house of Tobar, — To-
bar in Turkish meaning earth-sprung, aboriginal. This
rule lasted until the close of the sixth century, and was
instrumental in profoundly modifying the nation, its

PHTSIOAL FBATUBB8 AND OBIGIKS 27

oult, arts, and language. Modern China indeed may be
said to have had its birth in the year 618 a.d., when a
Chinese by name Li Shimin was instrumental in founding
the dynasty of T'ang, placing, as according to Chinese
principles of parental authority he was compelled to do,
his father on the throne as Kao Tsu. Under the new rule
China, practically as now known, was welded into one
powerful state, for a time, until the rise of the Caliphs, the
most powerful in the world. The influence of China, in-
deed, in the latter part of the seventh and the early part
of the eighth century, was materially instrumental in
checking the eastward spread of Mohammedan arms,
which at that period seemed not unlikely to spread to
the shores of the Yellow Sea.

All this while there was no mention of the Mongol
state nor of the Mongol people. The first mention in his-
tory of the Mongols, according to Howarth, is during the
T'ang dynasty in the seventh century. They were never
a people in the ethnological sense, having been formed
out of roving Arimaspian and Getic tiibes by an outcast
from the Wei Empire of northern China in the fourth cen-
tury, who took the name in Chinese, of Mukula, which
was pronounced by his followers as Mughul, the original
form of modern Mongol. This sept first came into notice
as the Jwan Jwan of the Chinese, the Avars of Gibbon,
who after their defeat at the hands of the Tughul Turks
in the sixth century emigrated to the steppes of southern
Russia and grievously troubled the Greek Emperor of the
day. With China they had little connection until the
thirteenth century, when under their great leader Jenghiz
Khan they attacked, and imder his grandson finally con-
quered, China, where for one hundred years, 1260-1360,
they formed the ruling race. They have left little impress
on the land or people, and this is true with reference to

28 CHINA IN LAW AKD GOMHEBOB

all the conquering tribes who have settled in China.
They have been absorbed by the Chinese, adopting their
manners, customs, and laws.

It may not be known to the general reader that in 1686
A.D., by an edict of the Emperor Kang-hi, all the ports of
China were open to every nation which chose to visit
them for trade, but were all closed again in 1709. In
1692 A.D., the Emperor Kang-hi also issued an edict tolerat-
ing the Christian religion. This was in consequence of
the great persecution that the missionaries were subjected
to by the mandarins. The report of the Board of Rites
was most favourable to the character of all the Christians
then resident in China. This report states that the
Empire was indebted to them for the many and sincere
efforts which they had rendered during the civil and
foreign wars. Moreover, he adds, **the Europeans are
tranquil, and they do not excite troubles in the provinces.
Besides, this doctrine has nothing in common with the
false and dangerous sects of the Empire, and their maxims
do not lead people to sedition.'*

While the later policy of China has been one of exclu-
sion, the earlier records prove that formerly China was in
the van of progress, and eagerly welcomed foreign inter-
course. In the early days of the Empire under the dy-
nasty of the Hans, in the second century B.C., the great
Emperor Wu Ti sent the celebrated traveller Chang K*ien
to open communications with central Asia. The story
has been told, but will bear repetition; it reads almost
like a romance, as written down contemporaneously from
the words of the traveller himself in the Shi-ki or « His-
torical Record," a work which has often been compared
with that of Herodotus, except that for trustworthiness
and historical acumen the Chinese book is immeasurably
superior.

PHYSICAL FEATXTBES AND OBIOIK8 29

Along the north and northwest frontiers of the new
Empire stretched the realm of the Hiung Nu Turks, at
the time under the rule of a sultan called Maotun, a
sovereign well fitted to rank amongst the great founders
of empire. Half a century before, the Hiung Nu had
conquered a people called the Yuehti, and had driven the
remnant across the Pamirs into the land of Baktria, at
the time under the rule of the successors of Alexander
the Great. Here after some preliminary struggles they
had coalesced with the Tokhars, had overcome the Greeks,
and founded a new state, known in history as that of the
Indo-Skyths. Wu Ti had conceived the design of opening
communications with them and founding a formidable
coalition against the Hiung Nu Turks. The envoy se-
lected was Chang K'ien, who accordingly set out about
139 B.C. from Sacheo in Kansu. He was attended by
an escort becoming his rank, but his attendants were
attacked and either killed or dispersed, and Chang K'ien
Idmself was taken prisoner by the Turks and held in de-
tention for ten years. He was, however, treated with
consideration, married a Turkish wife, and became a
master in the language. His accounts of the manners
and customs of these people have all the charm of first-
hand authority. The vigilance of his keepers having be-
come relaxed, he contrived to escape, and nothing daunted
by the past, he determined to carry out the object of his
mission. The first important place arrived at was Yar-
kand, which he found a prosperous city. The prestige of
the Turks was, however, so strong that, although the
leaders listened to him with interest, they declined to mix
themselves up in any warlike enterprise. From there he
proceeded to Eashgar with like results. From Kashgar,
reversing the track of the Polos just fifteen hundred years
later, he crossed the Pamir, and arrived amongst the

80 CHINA IK LAW AND COMMERCE

Tuehti, of whom he gave a highly interesting account,
both political and ethnographical. Although his propos-
als were taken into favourable consideration, they were
eventually declined from prudential motives. Every
courtesy and consideration was shown to the envoy, and
facilities were given for the collection of information of
all sorts. From Baktria Chang K'ien went on to Parthia,
with which powerful state he succeeded in opening diplo-
matic relations, which continued for many centuries, and
were, indeed, only finally put an end to by the Moham-
medan conquests in western Asia. In the time of the
later Hans, in the first century A.D., the feats of Chang
K'ien were equalled under the celebrated Pan C'hao, and
his equally celebrated lieutenant, Kan Ying. Pan C^hao
had conceived the idea of opening up communications
with Rome herself, and Kan Ying had actually succeeded
in getting as far on the route as Hormuz. Here, however,
Parthian and Arabian jealousy came into play, and the
shipmen on one pretext or another succeeded in preventing
his embarkation.

In the southwest the Cliinese were equally desirous of
entering into relations with Burma and India, but met
with petty obstructions, which, however, did not prevent
eventually pretty close political relations being established.
In 97 A.D., I find an embassy from the King of Ceylon
arriving at court with presents of ivory, water buffaloes,
and humped oxen, and in 120 a.d. another, accompanied
by a number of conjurers from the West. They called
themselves men of the western sea, Europeans, from
Tatsin, i.e. Syria or the Roman Empire. In acknowl-
edgment the Chinese Emperor conferred on the King of
Ceylon the honorary rank of Tuwei, as in modem days
Queen Victoria conferred on the Chinese minister, Lo
Funglo, the honorary rank of K.C.B. It was also by

PHYSICAL FEATXntES AND OBIGINS SI

this route that about 60 A.D., Buddhism, in consequence
of a dream of the Emperor Ming Ti, was first introduced
into China. More directly, in 166 A.D., the Emperor
Marcus Aurelius sent a commercial mission to China,
which was repeated in the year 265 a.d.

Omitting the intervening dates, during which embassies
were not infrequent from western Asia, I find in 1253 a.d.
a mission arriving from Louis IX of France, but violent
polemical discussions with Mohammedans and Nestorians
caused it to be dismissed with the caustic reply : *^ God
has g^ven the Scriptures to the Christians. That holy
Book does not permit them to vilify one another, nor for
the sake of gain to abandon the paths of justice. Go and
practise its precepts."

In 1260 A.D. two Venetian nobles, named Polo, visited
China with a cargo of merchandise. They were well
received by the Emperor Kublai Khan, who proposed send-
ing back with them an ambassador to the Pope to induce
the Pope to send him Christian instructors. The ambassa-
dor died on the journey.

In 1276 A.D. the two Venetians returned to China and
were again well received. They brought letters from
Gregory X. The son, young Marco Polo, became the
confidant of the Emperor for seventeen years in various
offices of trust. It was during this time that he acquired
the information which was afterward put into book form
and given to the world under the title of " Marco Polo's
Travels in China," and which has been rendered invalu-
able to students of Chinese history by the annotations and
notes of the late Sir Henry Yule.

Diplomatic relations between China and Portugal began
in 1518 A.D., which resulted in the Portuguese settlement
at Macao. In 1624 a.d. the Dutch gained a settlement
on the island of Formosa, where the Chinese carried on an

82 GHIKA IK LAW AND COMMEBCE

extensiye oommeroe with them. It was during the fol-
lowing year, 1625 A.D., that the Chinese Emperor T'ien K'i
called to his aid the Christian missionaries and a number of
Portuguese in repelling a Tartar invasion. The superior
knowledge of these foreigners in the use of artillery
enabled the Chinese to drive the Tartars temporarily
away, but not until the invaders were within seven miles
of Peking. Soon afterward the mother of the Emperor,
his ohief wife, eldest son, and twenty ladies of rank
at court received Christian baptism. The Empress was
baptized Helena.

While the preceding and subsequent intercourse between
China and foreign nations was going on, the Chinese never
departed from their policy of learning all they could with-
out giving information about their Empire. But under
the pressure of western civilization China is being gradu-
ally opened to foreign intercourse, until now it is not dif-
ficult to examine the machinery of the Chinese govern-
ment and learn much of its mechanism. If the origin of
the Chinese is still doubtful, the geography of the country
they inhabit and the laws by which they are governed
have been made reasonably certain by the research of
scholars.

Note. — I am indebted to T. W. KingsmiU, Esq., one of the best
authorities on China, for the material information of this chapter, and
it is pleasant to acknowledge his friendly interest in other regards.

CHAPTER Bt

OOYEBNMENT

AcooBDiKG to the theory of the goyernment of China
the Emperor is an absolute roler. His power over the
lives and property of his subjects is unlimited. He dis-
poses of all places in the Empire, and punishes as he may
decree. He can appoint to, or remove from, office, impose
taxes at will, confiscate or appropriate property without
compensation, and there is no appeal against his decision*
N o other ruler possess es as dfflpoti^- p^^^y ^vat m many /
people, but there is no ruler who is more carefuLthan tl^
Emperor of China to use that power only as modified by
the customs of his Empire.

"^n tlie administration of the affairs of the Empire the
principle is recognized that laws are the particular institu-
tion of the legidator, while customs are the institution of
a nation in general, and that nothing tends more to pro-
duce a revolution than an attempt to change a custom by
a law. In a despotic empire there are generally but few
laws that can be so called. There are manners and cus-
toms, and if these are overturned, the result may be a
state of anarchy. The Emperors of China have respected
and, more or less, been governed by the above maxim; and
hence the government has been so reluctant to disregard
the manners and customs of the people.

In view, therefore, of the fact that cus tom e nters so
materially as a determining factor into the administrative
system of China, it is importantTto bear in mind the dis-
» 88

\

84 CHINA IK LAW AND COMMEBCB

tinction between the unit of that system and the unit of
the Chinese Empire.

Politically t he j^overnment of China turns on the recip-
rocal duty of parents and childreiL.. Thft Kmpflror is the
h ead of the gove rnment^ but the family is its base, and it
is not from the central head at Peking, but from the family
unit that the building of the governmental fabric proceeds.
In the family life may be seen the larger life of the Empire,
and it is the family unit that gives the semblance of unity
to the Empire.

It is to the single family that the number of families is
added which makes the village, and it is from the g^oup
thus formed that a head-man (ti-pao^ is selected by the
inhabitants as practically the arbiter of disputes and the
dispenser of justice. But the custom which gives to each
village the privilege of selecting its own head-man, while
it generally exempts such head-man from official interfer-
ence, can still hold him accountable for the peaceful
behaviour and order of the inhabitants of his village.
Thus it appears that by the additions to the family unit
a small principality, as it were, is formed, which custom
has invested with the right of local self-government, and
through that medium a democratic element is introduced.

As indicated, the inhabitants and head-men of villages
are not beyond official influence, for it is sometimes re-
quired, after the head-man of a village has been selected,
that he receive the confirmation of the district magistrate
(che-hien) before entering upon his duties, and there are
instances where the principal landowners have become
security for the head-man's proper discharge of his func-
tions. This precaution, taken by the district magistrate,
is due to the fact that the duties of a head-man occasion-
ally have relation to the government of the district, and it
is an assistance to the magistrate to communicate with

GOVEBNMEKT 36

him. When that necessity arises, the communication is
addressed not directly to the head-man, but to him
through the local constable (^po-fing^^ and the constable
and head-man are the medium through which any definite
action may be taken and announced.

The family is the imit of the Empire, the district
magistrate the unit of the administrative system and the
beginning of the oflBcial hierarchy. From the village to
the town is one step upward, and from the town to the
district (Men) is another, a district usually including
several villages and towns, and being in area about the
size of the average English county.

Although the district (hien) is the lowest division of
the administrative system, and the magistrate who pre-
sides over it is the lowest grade officer of the civil hier-
archy, the district is nevertheless the most important
division, and to a large majority of the people the magis-
trate is the embodiment of all the essentials of govern*
ment. He is looked to, as the guardian and protector of
the personal and property rights, with the degree of affec-
tion' and confidence with which a son should look to his I
&ttier. In Chinese official documents the district magis- 1
trate is frequently referred to as the father and mother of
his people. And as the head of a household can make it
happy or unhappy, according lb' his disposition,, so the
rule of a good or a bad magistrate promotes order or dis-
order among the people of his district.

The eighteen provinces of China proper are divided into
thirteen hundred districts (Aten<), but the dutie8.j^ertain-
ing to each district are not divided among separate offi-
cials, a s is usuat in western countries. . The magistrate of
a district is invested with both criminal and civil func-
tions ; he is the keeper of prisons, the overseer of the public
roads, the registrar of land, the famine commissioner, and

86 CHIKA DT LAW AKD COBfMEROS

the officer of education ; a catalogue of duties, and such a
variety as unmistakably show the importance of this officer
and his intimate relations to the people of a district.

While in theory the duties of a magistrate (ehe-hien)
are not divided, and he is held directly responsible for
their performance, yet in practice he has quite a staff of
assistants; and the necessity for a large staff is evident.
No one official could perform duties so numerous and
varied without assistants. Of the assistants to the magis-
trate, the law secretary (It-wan) and the revenue secretary
(tu^ihe) are the two most important. The next in impor-
tance are the official secretary and the correspondence sec-
retary (king4ih and cAoo-moo), whose duty it is to draft
despatches, reports, and other official documents, and after
these two secretaries come the tax collectors. The duties
of the numerous clerks about a magistrate's yamen are in-
dicated by the divisions in which they respectively serve.
The tenure of some of these is determined by that of the
magistrate, but there are a few who continue in office
through all changes. To enable the magistrate better to
perform his duty as an educational officer, he is assisted
by one or two educational mandarins, who are stationed in
every district city, and by whom the primary examinsr
tions of candidates for the public service are conducted.
Many of the subordinates of the magistrate, called ex-
pectant officiaLs, derive their appointment from the central
government and have the rank, in consequence, of man-
darins, and are thus fitted by social standing to appear at
the table of the magistrate himself. Among these subor-
dinates, other than those previously mentioned, there are,
in the judicial section, the assistant district magistrate
(Jiien cKtng)^ corresponding in some respects to an old
county court judge, the deputy assistant magistrate (ehu
pu)^ and the sub-district deputy magistrate (iem Men)^

QOVEBKMENT 87

who frequently lire near the hien yamen if not in it.
Their duties are minimized or increased according to the
activity and cupidity of the district police inspector, who
is also governor and superintendent of the district jail.

The district treasurer (kurta-uhe) advises the magistrate
from time to time as to the state of the local exchequer
and the trade in different parts of the district, so that at
any time a new lUdn station may be set up and thus
increase the money passing through official hands.

The educational duties are supervised by a director of
studies (hiao-yu) and a sub-director of studies (jiem tao)^
the more onerous part of whose duties it is to superintend
the literary examinations and register the candidates
entering for the same. They hold a sinecure post as cura-
tors of the temples of Confucius and of Wisdom and
Learning, and as searchers of the classics.

There are also attached to the district salt departments
seven petty officials, but these do not act as checks upon
each other. They are : (1) assistant salt controller
(jfunrtwng)y who may often be the district treasurer as
well ; (2) deputy assistant salt controller (j/im-fu) ; (8)
salt department inspector (ti hi) ; (4) sub-assistant salt
controller (jyun-pau) ; (6) salt department receiver
(ffenko-ne'ta-Bhe) ; (6) salt department examiner ( jn-
yen-so'ta-ihe) ; and (7) the unclassed examiner of the
joint salt and tea departments (yen-£?A'a-fa-«Ae). Each
of these is supposed to keep accurate checks of the salt
transactions, but a search through the archives of a dis-
trict yamen would not reveal a return of one-tenth of the
salt transactions that pass through the palms of these
officials.

The yamen runners are an anomalous body, made up of
detectives, constabulary, yamen messengers, and barrators.

After the district comes the department or prefecture

88 CHINA IK LAW AND COMMBRCB

(/u), which is the second territorial division for adminis-
trative purposes. The department includes several dis-
tricts, and is presided over bj an officer known as the
prefect. There are now about one hundred and eighty
departments, but these vary in size, though the average
throughout the eighteen provinces is about six districts to
a department. The department is the earliest division of
the administrative system, and the civilian who stands at
the head of it may be addressed as the judge, or as the
prefect (ehe-fu). The official residence of the prefect is
in a subject district city, which is then known as the
departmental city C/^)* ^^^ prefectural office lb the court
of appeal for suitors from the district magistrate. The
prefect (ehe-fu) seldom decides any of these cases himself,
but shifts such duties on to the first-class assistant depart-
ment magistrate (chow tung)^ who answers in some degree
to the British high sheriff, and the second-class assistant
department magistrate (chow pan)^ who may be likened
to the deputy sheriff, each with magisterial power. Then
comes the prefectural jail governor and controller of police
(li-muK)^ who acts as crown prosecutor and in subordinate
sheriffal f unctions« .

The third >terT!itorSal division for administrative pur-
poses is the( circuity %hich is formed by the grouping
together of several departments. There are about eighty
circuits, and each is presided over by an officer whom the
Chinese designate as intendant of circuit (fen sun too or
taotai)^ but who is better known to foreigners as the too-
tax. To the intendant of circuit appeals lie from the
departmental courts, but customarily the intendant per-
forms very few judicial or fiscal duties, being rather a
superintending administrator of general affairs. This
officer usually resides in one of the departmental cities,
unless such be outstripped in wealth and population by one

OOVfiBKMBKT 89

of the district cities, in which case the official residence is
in the latter. The more important are those which in-
clude the treaty ports. As stated, the intendant is known
to foreigners as the tootot, and the foreign consuls at the
treaty ports communicate with the t€U)ta% on subjects relat-
ing to foreign business, or when there arise issues between
their compatriots and the Chinese. The intendant is the
lowest official exercising a direct ex-officio authority over
the military in the event of local risings, but he is a very
important officer in connection with foreign affairs at the
treaty ports, and has it in his power to facilitate or delay
the commercial interests at such a port. At the port of
Shanghai there is a mixed court in which a Chinese mag-
istrate and a foreign consular official preside, and appeals
lie from that court to the taotaCi court, but when the
t(iotai sits judicially, a foreign consul-general sits with him
^^ in the interest of justice and to watch the proceedings."
A further^territoriai division for administrative pur-
poses is the| provinper («Ae^). It has been stated that
there are ei^htee^ provinces constituting China proper,
over each of which an officer presides with the title of
governor (jmn-fu). The governor is the manager of all
the affairs of a province on behalf of the centnd govern-
ment. His official residence is in the chief city of the
province, which is then called the provincial capital.
Immediately under the governor there are five officials
whose authority extends to all parts of the province, but
only in matters relating to that branch of public business
witli which each is officially intrusted. These are the
superintendent of provincial finances (/an-tot), the pro-
vincial criminal judge, the provincial educational exami-
ner, the salt controller (jyen-yuTig she-sze)^ and the grain
intendant (liang-tao). These, with the governor, form
the bureau of provincial administration. The superin-

40 CHIKA IK LAW AKD COMMEBOB

tendent of provincial finances, or provincial treasurer,
receives the taxes from the district magistrates, and
accounts for them to the governor first, and then to the
fiscal board at Peking. He is financial commissioner,
lieutenant-governor, head of the provincial civil service,
and treasurer of the provincial exchequer. To the pro-
vincial criminal judges (ngan-eha ahe-ne) the district
magistrates deliver all criminals sentenced by them to
banishment or death, whose cases are then reexamined
and reports made first to the governor, and then to the
criminal board at Peking. The provincial educational
examiner visits the departmental cities in tl^e province at
stated periods and, with the aid of the prefect, conducts,
in the examination hall, the last of the series of primary
examinations, after which a legally fixed number of candi-
dates from the district attain the lowest or highest degree.
The provincial educational examiner corresponds with the
ritual and educational board in Peking, but his cor-
respondence, as well as that of the other two officials
named above, is of a routine and formal nature ; and they
do not communicate at all with either the Cabinet Council
or the Emperor.

The territorial divisions which have been described will
appear to have been arranged to supply the governor
(^Bun-fu) with a sufficient number of judicial administra-
tive officials to transact all the business within his juris-
diction. The provincial capital being in the chief city
of a department, with the common boundary lines of two,
and sometimes three, contiguous districts running through
it, the governor is thus placed in a favourable geographical
position also for the convenient transaction of provincial
business. As the district magistrate Qehe-hien) is the last
connecting link between the throne and the people, so the
governor (^sun-fu) is the essential link between the cen-
tral and the administrative system.

OOYBBNMEKT 41

Up to about three hundred years ago the governor was
the officer of highest rank in a province, but subsequently
two or more provinces have been united under the execu-
tive authority of an officer styled the governor-general
(ttunff-tuh^i but better known to foreigners as the viceroy.
The grade of a viceroy is a shade higher than that of a
governor, though he is not always regarded as the superior
official, for in many instances neither of the two can move
without ^ moving " for the consent of the other. Both are
cautious in issuing commands, and when a command is
issued, it is usually qualified with the words : ^^ But you
will at the same time await the instructions of his Excel-
lency the Governor," or " his Excellency the Viceroy," as
the case may be. The same caution is used when the
viceroy and the governor jointly memorialize the Emperor.
Both may join in the memorial, but if the subject of it is
one of great delicacy, and there should be doubt as to how
it might be viewed by the Emperor, the drafter and signer
are distinguished thus : ^^ I may add that your servant the
Viceroy," or "your servant the Governor, is the drafter
of this memorial." If either the viceroy or the governor
is a Manchu, the word "slave" is used instead of "ser-
vant " in referring to such official. The governor-general
is ex officio a president of the Board of War and a junior
president of the Court of Censors.

In theory and in practice the viceroy is really the
superior of the governor, and it is seldom that the latter
antagonizes the wishes of the former. In a few of the
provinces the viceroy administers affairs without the
intervention of the governor. The province of Chili,
for example, is under the direct and exclusive adminis-
tration of a viceroy. At Nanking and Canton the vice-
roys of the provinces in which those cities are situated
supervise the salt gabelle, have control of the military

\'

I . V

'^

42 CHINA IN LAW AND COMMBBCB

affairs, and are the responsible agents for informing the
central goyernment on subjects bearing on the relations
between China and western nations. To assist the viceroy
in his various duties there is a special bureau (jfung wuh
chi) of the nature of a military secretariat, and his per-
sonal staff consists of an adjutant (chung hun) with mili-
tary rank, and a body of subordinate officers, military (wwn
9un pu) and civil (wen sun pu)^ whose duties are more or
less clerical.

The main idea that runs throughout the entire pro-
vincial organization is that each province exists as an
independent unit and is sufficient unto itself. There is
a resemblance between the provinces of China and the
states of the American union under the Articles of Con-
federation, and for practical purposes the provinces are as
self-existent as were the states under those articles. The
government of a province, like that of a village, is uni-
formly free from outside interference. In its adminis-
trative orbit the movement is autonomous. The whole
machinery of the provincial government, educational,
fiscal, penal, and judicial, is practically independent.
Under the authority of the governor, the revenue of the
province is administered, its defence is provided for, com-
petitive examinations are held, and other functions of gov-
ernment are exercised. The central government refuses
to interfere and is silent, except when in a critical mood.
It is seldom that a viceroy, although the superior colleague
of a governor, takes part in the provincial administration.
But there is a military governor for each province, a fea-
ture copied from the Manchurian provincial system, and
known as the Tartarate organization. It is this organiza-
tion which specially appertains to the Manchu dynasty,
and in every province of the Empire there has been placed
a military official of the nationality of the dynasty, whose

60VEHNMENT 43

rank the imperial edicts recognize as the first in grade,
such edicts being addressed to the Tartar general, the
governor-general, and the governor.

The appointment of the officers of the Empire i» the
prerogative of the Emperor, but after a governor has been
appointed over a province, if he is reasonably prompt in
paying the requisition made against his province, and in
preserving the peace therein, he need not apprehend inter-
ference by the central authority. And as a governor has
the privilege of memorializing the Emperor in his own
name, and therefore of directly reporting upon the conduct
of the subordinate officials, his authority in the province
is admittedly supreme for the ends of practical adminis-
tration.

In the outline presented of the territorial administrative
system, the military establishments of the provinces have
not been fully referred to. There is a military establish-
ment in each province, as well as a civil and educational
one, and although the higher civil officials may in a certain
deg^e take cognizance of military affairs, yet the military
establishment is under the command of the Tartar general
of the province. The rank of the Tartar general is equal
to that of the viceroy and may be a shade higher, as this
military official is a check on the viceroy and enjoys the
privilege of writing direct to the Cabinet Council of the
Emperor. If it be remembered that the reigning family
in China is Manchu, it is obvious that the object in placing
a Tartar general in each province, and making him supreme
in military affairs, is to safeguard the interest and influence
of that family.

The administration of the central government is in-
trusted to two councils. The one is the Grand Secreta-
riat QNui KoK)^ and the other the Grand Council (JKiun Ki
OKu). Each of these councils has its president, its vice-

44 CHQTA IK LAW AKD OOMMSBOB

president, and subsidiary boards oonoerned with the man-
agement of separate departments.

The Orand Secretariat, or Imperial Cabinet (iVut KoK)^
is of greater antiquity than the Orand Council, and con-
tinued the most important division during early times.
It is composed of four members (ta-hioh'She^j two being
Manchus and two Chinese, with one Manchu and one
Chinese assistant secretary. As aids, there are ten
learned men selected from the Hanlin College, with the
addition of about two hundred secretaries selected at
pleasure. The duties of the Orand Seci^etariat are such
that the members sustain the closest official relations to
the Emperor. They submit to him all papers relating to
the affairs of the Empire, and receive from him necessary
instructions in accordance with which official edicts are
prepared. They keep the seals used by the departments
and for documents, and are the officials whom the Empe-
ror most frequently consults and in whom he chiefly con-
fides. Their duties are to deliberate on affairs of state,
to declare the imperial will, and to aid the Emperor in
governing his subjects.

The Orand Council or Imperial Privy Council (JStun jE!
(7A'ti), of later date than the Orand Secretariat, was pro-
vided for in 1780. The members are generally chosen
from among those of the Orand Secretariat, the presidents
and vice-presidents of the boards, and the principal officers
of all the courts in the city. It is before the Orand
Council that the heads of the departments appear when
the Emperor is to be consulted. It is less ornamental
than the Orand Secretariat, but now more important, hav-
ing more onerous duties to discharge, and, at times, framing
the edicts for the imperial signature. When the Orand
Council was formed, the intention was to make it a far
more numerous body than it has ever been, but the inten-

GOVEBNMEKT 45

tion was abandoned, because it was thought that fewer
members would oftener speak with one voice, which would
give it more influence. At present there are five mem-
bers (^IRun jKi Ta CKen)^ who also hold other substantive
offices, and sixty secretaries (chang king). In theory
both the Grand Secretariat and the Grand Council have
daily audiences with the Emperor. Practically such audi-
ences are necessary to facilitate the transaction of business,
and in recent times the Grand Council has superseded the
Grand Secretariat in business importance, and has become
the imperial chancery or court of appeals. Under the
two councils there are six administrative boards (jtinpu).
Each board has an organized staff of clerks and is other-
wise equipped for the business it was formed to transact.

The Civil Board (Jji PW) has jurisdiction over the
mandarin or official class, appointing and discharging
them, regulating their duties, pay, promotion, the assign-
ment of work, and the granting of leave. Whenever the
Emperor confers posthumous honours or rewards, they are
distributed by this board.

The Board of Revenue QEu Pti), as its name implies,
receives the contributions from the provinces and disburses
the payments of the administration. It is this board
which exercises the confidential prerogative of ascertain-
ing the names of the Manchu women who are eligible for
the imperial harem. It combines the functions of collect-
ing money and selecting women, which naturally give it a
peculiar influence and a far-reaching importance. This
board has about fourteen subordinate departments to assist
in the supervision of the revenue of the provinces.

The Board of Rites (Xt Fu) is probably the most im-
portant in this branch of the administrative system. The
supervision of the ceremonial and ritual observances, which
form a distinguishing feature of the national character.

46 CHINA IN LAW AND COMMERCE

constitutes the main function of this board. The^Book^of
Rites co^tains^ourteen volumes, and is. the- s t a tutory law
for the board. The ceremony for feast days is minutely
provided for, and even the cut of a court jacket is strictly
described, as well as the etiquette relating to subjects of a
military and civil character. There is no act or omission
that will bring a Chinese official so quickly under censure
as to be careless in official ceremony. On court occasions
or when the Emperor is travelling, to violate any require-
ment of the Book of Rites invariably results in the dismissal
of the offending officer.

The Board of War (Ping Pu) should be among the first
in importance, but it has never succeeded in preparing the
Empire for defence against external foes. Owing to the
peculiar autonomy of the provinces, each having its own
military organization, when it has any at all, the board is
in great measure precluded from extending its authority
with the view of centralizing the military system. The
garrison at Peking is a distinct military organization, inde-
pendent of the control of the board, as is also the banner
army of the Manchus and Mongols. The board appears
powerless to organize an effective army. There is no uni-
form system, no single idea governing, — there is, in fact,
an entire absence of cooperation. During the several years
preceding the China- Japan War, China expended millions of
dollars to equip an army and a navy, but when the war was
declared and the result of the vast expenditure put to the
test, it was proved wholly ineffectual. It was not because
military material was wanting in the Chinese character, but
because there was no organization, no rallying-point in the
military system, no one directing mind, no confidence on the
part of the soldier in his superior officers. Before there
can ever be a military organization in China deserving the
name, there must be a thorough change in the very thought

GOVERNMENT 47

and habits of the Chinese. And how can China have an
organized army when the Board of Rites can intervene
and prescribe the discipline and etiquette of the military
forces ?

The Boa rd of Pani shmeiit (Sing Pu) might ha more
a ptly called the c ourt of appeal. With the Board of Puh-
ishment are associated at certain periods of the year the
censors and the court of revision, and when the three are
combined, they form a supreme court for the cognizance pf
capital offences. At other periods of the year there ai
six minor courts associated, and this association forms the
judicial bench at Peking for revising the punishments ad-
judged in the provinces before these are submitted to the
Emperor for his approval. This board marks all changes
made in the written law and the supplementary enact-
ments, and prepares all new editions of the Penal Code for
publication, regulates prisons, and has attached to it a
treasury which is supplied by fines on jailers and others.

The Public Works and expenses are prerogatives of the
Board of Works (Kung Pu). Whatever relates to plans
for buildings of wood or earth, to the form of useful
instruments, to the law for stopping up and opening chan-
nels, and to ordinances for constructing the mausoleums
and temples, and to the mint, is under the government
of the Board of Works, directed by two vice-presidents
(%he-lang) with two subordinate superintendents. The
duties of the board are miscellaneous, but nowhere in
China does it seem that the board is energetic and obser-
vant in attending to its duties. No city in the world
could be in a worse sanitary condition than Peking, where
the board sits, and in travelling in China it is easy to see
that no attention is given to the repair of the highways by
land and water. The Grand Canal, a monument of
Chinese skill and industry, has been neglected to the

\

48 CHINA IK LAW AND COMHEBCB

extent of greatly impairmg its usefulness and defeating
measurably the object of the comprehensiye mind that
conceived its necessity as a means of advantage to the peo-
ple. The masonry that once lined its sides for miles and
made the canal a thing of beauty as well as usefulness has
fallen away, and the granite blocks are boated off and sold
at liberty. During the two hundred years and more the
Tartars have ruled China the rokds, bridges, and canals
have been shamefully neglected. The casual observer who
makes a trip to the interior of the Empire sees all around
him the evidences of decay in those works which, under
native rulers, showed the perfection of mechanical skill.

Before 1860 there was no department of the j^overn-
ment~X)f China charged with the transaction of business
relating' to intercourse with foreign nations. It was not
the policy of the present dynasty of China to have any
such intercourse, but, on the contrary, to avoid and dis-
courage it. The pressure of events, however, compelled
the abandonment of this exclusive policy, and in 1860 a
special council memorialized the Emperor upon deciding
how foreign affairs should be conducted and upon provid-
ing for a department to that end. In consequence of the
memorial a decree was issued, in January, 1861, command-
ing the formation of the department so generally known
to foreign governments as the lhing4i Yamen. Notwith-
standing the decree, the unwillingness to depart from the
cherished policy of exclusion is made plain by the consti-
tution of this new department, which is not so much a
separate organization as the colour of a cabinet formed
by the admission of members of other departments. The
unwillingness is emphasized by the fact that for thirty
years after the organization of the Tsunff-li Yamen its
name does not appear in the official records of the Chinese
government. When first organized, the Tuung-li Yamen

GOVEBNMENT 49

consisted of three members, but soon afterward another
was admitted, until subsequent admissions raised the num-
ber to eleven. This department is closely identified with
the Grand Council, and some of the members of the latter
are also members of the former. As the taotai of a circuit
is in closer official relationship with foreign officials than
any other officer of the provincial administration, so in the
central administration the Tsung-li Tamen is the depart-
ment with which the foreign ministers at Peking conduct
business on all subjects relating to intercourse between
China and their respective countries. The name of the
T9ung4i Tamen has been changed to that of the Wat
Wu Pu as more significant of the cause of its origin and
scope.

It is possible that in theory the system of balances and
checks, which obtains between the departments of the
central and provincial governments, has been thought
out and applied with unsurpassed acuteness, for there is
no government in which there is more interdependence,
checking important action by one department without
the cooperation of other departments.

In outlining the duties of the Board of War it was indi-
cated that the garrison at Peking is a distinct miUtary
organization independent of the jurisdiction of the board.
The same principle of independent organization applies to
the civil government of the capital. Although Peking is
situated within the province of Chili, over which a viceroy
rules without having to recognize a governor as a colleague,
there is a civil government for Peking just as the District
of Columbia creates a special sphere for Washington City
outside of Maryland and Virginia. This is also the case
with reference to the northern or mountainous half of
Chili which lies beyond the Great Wall and which is under
the superintendency of Jehol and the military governor of

50 CHINA IN LAW AND GOMMEBGB

Chengte-fu. The district of Peking and that lying be-
yond the Great Wall are strongly Mongol and bear such a
relation to China as does Algiers to France or Poland to
Russia. There are no special regulations provided for the
government of the dependent territories of Mongolia and
Tibet, nor for the aboriginal tribes scattered along certain
parts of the frontier of the Empire. The region to the
north of the Great Wall of China, as far as the forty-
second parallel, and from the Yin Shan range on the west
to the Palisade on the east, though originally Mongo-
lian and ruled by Mongolian princes, has become Chinese,
and for the purpose of administration has been section-
ally added to Shansi and Chili. These new parts of the
Chinese system have the Mongol, the Manchu, and the
Chinese rule of administration. The central Chinese
authority has no direct control over the local Mongol
inhabitants, who are tried by their own Mongol officers
when offending against the law.

There remains at present no trace of the once famous
Mongolian army as a regular force. Among this nomadic
people there is a clanship with some of the essential ele-
ments of feudalism, as the Mongol princes have body-
guards, numbering from two hundred to two thousand,
according to their respective wealth and the necessities for
the protection of their palaces. The Chinese and Manchu
officials, civil and military, deal only with Chinese settlers,
and fill the office of policemen and tax collectors among
the colonists.

Manchuria is the ancestral home of the dynasty that
now rules China. It is attracting world-wide attention be-
cause of the war between Japan and Russia, but before the
war began mercantile ventures were fast bringing it under
the keen eye of business. The facilities for trade and the
perseverance of the modern merchant disclosed the invit-

GOVERNMENT 61

ing business possibilities of Manchuria long before the
Russians and the Japanese pitched their military tents in
its fertile plains and along its mineral mountain sides. In
this connection a special reference to the government of
the three provinces into which Manchuria is divided, will
be in order.

The provinces are known in Chinese as the three eastern
provinces (JSmg San SheTig). The two most northerly
of these provinces, Heh-lung-kiang, or Tsitsihar, and
Eirin, are organized upon a dominating military basis,
while the southern province, Sheng King, which includes
the Manchu capital, Mukden or, in Chinese, Feng-t*ien,
approximates in its administration nearer to the govern-
ment of the eighteen provinces of China proper. This
southern province is governed for the Emperor by five
boards at Mukden, instead of six as at Peking. Each of
these boards is presided over by a vice-president who, in
his own special department, is a colleague of the head of
the province, the governor or Tartar general (Uiang
hun). In theory such is the system of the government of
Manchuria, but in practice the Tartar general, as the mili-
tary head, has never given up the supreme control, and
the real authority over the five boards is centred in him.
But the Tartar general does not often interfere with the
boards in their administration of matters of a civil nature.
It is only when such matters clash with his military func-
tions that he exercises his supreme authority. His rank
entitles him to rights and dignities similar to those per-
taining to the office of viceroy in China proper, and to
others somewhat higher. No troops can move into or out
of Manchuria proper without the consent of the Tartar
general, unless by the express direction of the Emperor,
the military organization being distinct from that of
China. It is composed of about two thousand Chinese

62 CHINA IN LAW AND COMMBBCB

and forty thousand Mancbus, and ofBoered mostly by
Chinese princes. These officers are: lieutenant-general
(tu tung) ; deputy lieutenant-general (^fu tu tung) ; ad-
jutant (j/in wu UanAing) ; colonel (Jkiac-ki Uan-ling) ;
lieutenant- colonel (/u hiao-ki Uan-litig^ ; adjutant (ytn
wu chang king); assistant adjutant (wei yin ton chang
king^j usually selected from among the lieutenants ; cap-
tain (UO'ling)^ generally a hereditary position ; lieutenant
{hiaO'ki'hiao); and sub-lieutenant (wei thu hiao-ki-hiao).

The civil administrative and executive departments are
a shade different from those of China proper, and this
difference may be attributed to the desire and natural
pride of the dynasty in maintaining the dignity of the clan
of its birth.

The first most striking difference is the increased power
of the governor-general over that of his prototype in the
eighteen provinces. Then there is the elimination of the
Board of Civil Rites, whose duties have been delegated to
the Board of War, a significant indication of the value
placed upon civil rights in the realm of military environ-
ment.

The civil governor (fu yin) has not the power of his
namesake in the eighteen provinces. Under the civil
governor there is a civil vice-governor (fu cheng)^ who
is practically without power, but ex-officio provincial
examiner in literary examinations. Coequal with the
civil governor, in power at least, is the divisional com-
mander or military deputy lieutenant-governor, probably
one of the hardest-worked officials in the provinces. In
his duties he is assisted by the various garrison comman-
dants or military commandants (eheng thaw yu)y who
administer military law, disburse military funds, and
maintain the peace in these districts, but do not interfere
with ordinary civil affairs. These are left to the local vice-

QOVBBNMBNI 68

presidents or deputy vice-presidents of the five boards
(Wu Pu)^ acting as colleagues of the military com-
mandant. The second-class military commandant (J^ang
show yu) looks after the military administration within
the garrison alone.

As in China proper each province is supposed to be
divided into prefectures (/u) ; independent sub-prefec-
tures (ting) ; independent departments (chili chow) ;
departments under a prefecture (cAou^), and districts
{hien) subject to a prefecture or an independent sub-
prefecture. But this subdivision does not exist for prac-
tical purposes in the two northern provinces and, to a
limited extent only, in the southern. The city of Muk-
den is not under a ehe-fu as would be the case in China,
but an official of greater dignity and similar duties,
called fu yuen^ cooperates with one of the board of the
metropolitan department. Even the chaw and hien
officials enjoy a more dignified position than such officers
in China. There is this peculiar similarity, however, in
official life, both civil and military, in Manchuria and
China, and that is the invariable tendency to shift duties
and responsibilities on subordinate officials.

From the foregoing it will be seen that the civil element
of government is slower in entering into the Manchurian
system which, in the beginning, was founded purely
on the military unit, as contradistinguished from that
of China, which, as has been pointed out, is based on the
family unit, the civil idea. The needs of the government
of China were so pressing that, in 1876, the administra-
tive ordinance of that year was introduced in a practical
manner into the Manchurian administrative system. As
the result of the introduction of the ordinance of 1876,
Manchuria now has civil yamem and customs-coUecting
stations, and the wealthy merchants and prosperous

64 CHINA IK LAW AND GOMMBBGB

farmers are experiencing some of the burdens of govern-
ment. But this civil element has been so ingeniously
introduced as not to cause friction. It shows that the
Chinese are not only absorbing the Manchus with their
customs, but are gradually supplanting the system of
government to which the Manchus owe their authority in
China.

As there are in theory checks of a more or less general
character on all the departments of the central and pro-
vincial governments, which tend to make one dependent
upon the other, and which prevent any very important
action without cooperation, there is also in theory one
check upon the whole system of government, and this
check was intended to be absolutely free from all influ-
ences.

There are about fifty-six men distributed throughout
the Empire and privileged to inquire into and report
direct to the Emperor upon whatever may impress them
as not comporting with dignity and justice in the admin-
istration of the government. These men are the censors
of the Empire. They hold their positions for life. They
are not allowed to hold any other office nor to enjoy
emoluments other than such as strictly pertain to their
own positions. When they have accepted employment as
censors, they cannot change it for any other, however ad-
vantageous the preferment, and it is intended that thus all
temptation may be removed. They scrutinize the private
and public lives of all the officials, and that of the Emperor
is not exempt from their scrutiny. These censors can be
very troublesome when so inclined. Although the
Emperor is absolute, he would think carefully before he
ventured to interfere with a censor in the discharge of
his duty. Even should a censor look into the imperial
sanctum, and confront the Emperor himself with a memo-

GOVSBNMSNT 65

rial in which his social and official failures were set forth,
it would probably be prudent for the imperial authority not
to undertake any very serious act of resentment. By the
fundamental organism of the Empire a censor is exempt
from punishment, though there are instances where some
have been not only suspended and discharged for a too-
searching inquiry and the exercise of too great a freedom
in reporting results, but have disappeared mysteriously.
During the rule of the present Dowager Empress more
than one censor has had quite an uncomfortable experi-
ence when venturing too far upon the freedom of his
office. In fact, the Dowager Empress has her own way
about ^^ things Chinese," and when she decrees, the whole
of China obeys. She often appears to be about the only
man in China.

In the beginning of this chapter, I wrote that the
Emperor Hwang Li of China was an absolute ruler, but
after describing the machinery of the Chinese government,
a fuller reference to the power of the Emperor and th^
restrictions which custom has placed upon that power, will
iinistfate the force of public opinion in this despotic
govern ment.

It is believed that the Chinese have an authentic politi-
cal history of more than four thousand years, butjn the
national mind the Emperor does not appear as a sovereign
by divine right. True, he is known to his subjects as^the
son of heaven, and lus authority is unlimited, except by
divine right, but in the history of China it is taught that
no one has a hereditary divine right to the throne. Both
in theory and practice the primary claim to the successor-
ship is given by the deathbed or the testamentary nomi-
nation of the reigning sovereign, and it is not positively
known during the reign of any one sovereign who will be
his successor. It is recorded that in the two great his-

66

CHINA IN LAW AND GOMMSBCB

\ r -

e

y

torioal musters, the revered ancient monarchs, Tao and
Shun, each passed over his own son, because accounted
unworthy, and nominated a stranger. If an Emperor
wishes to establish his divine right, he must prove it by
his good works ; he must govern in accordance with the
principles taught in the writings of the sages, or his
subjects reserve the right to replace him by a successor
who will.

A high authority states that the Chinese had never heard
of ^EEe~nMQ€r^ipu'bUc " before their int^erconrse-with the
HbllandiBrs. They could not comprehend- how a-stste
could be pr operly ^ governed without a king, and even now
there is not a word or character in the Chinese language
which means or stands for liberty. But while opposed
to a republican form of government, it must not be
inferred that the Chinese wiU tolerate tyranny or oppres-
sion. They confer upon their Emperor absolute power,
but argue tiiat when they are oppressed, it does not pro-
ceed from the absolute power of the Emperor, but rather
from a want of proper appreciation of his high duties, and
that when the Emperor is thus guilty, they are under no
obligation to countenance or obey him. The Chinese say
that the obligations to govern justly and to obeyloyally
are~ reciprocal, and they have no such conscientious scru-
ples about deposing a bad Emperor as a respectable
number of intelligent Englishmen manifested about de-
posing James II.

As all places in the Empire are at the disposal of the
Emperor, and as he can impose taxes at wiU, such powers
logically include all others which a ruler could conceive
necessary for administrative purposes; but a few in
particular may be named.

The Emperor (Hwang Li) has the right to make peace
and to declare war, he is the judge of the conditions upon

GOYSRKMXNT 57

which treaties may be made, and his judgments are irrevo-
cable ; all sentences for offences are subject to the approval
of the Emperor, but the authority to inflict punishment
for minor offences is delegated to subordinate officials.
He can honour or disgrace a subject before or after death,
he can either reward or punish a subject, and, after
death, can visit upon the family the punishment that
would have been visited upon the subject had he been
alive. He may change the figure and character of letters,
or abolish any character already received, or form a new
one. He may change the names of provinces, of cities, or
of families, and may forbid the using of any expression or
manner of speaking, and bring into use new expressions
and manners of speaking. .

But the unlimited power with which, the ff^npftrnr is
invested is of teiier used judiciously than otherwise. There
are pages in China's history showing that this power has
been abused, but they are the exception and not the rule.
Of course what is here meant by judicious use has refer-
ence to what the people in China have approved and to
"what they have disapproved, and with such a standard
for comparison the ill use of the imperiara'utiiority, when
indulged in, has not continued long.

l^n examining the maxims which long usage and custom
have made the guide of the Emperors in the administration
of affairs, the governing idea in the Chinese mind seems to
have been that it was safer for the general interest to put
an Emperor on his good behaviour, and cause him to feel
that the respect which he showed for himself would be
the measure of the respect which his subjects would show
for him. The ^Id lawgivers have, therefore, from the
foundation of the EmpTre, made it ^..fiisLmaxim that the
Emperor was the father ol his people, and not a master
placed^n the throne to be served by slaves. An Emperor

((

68 CHINA IK LAW AND GOMMEBCB

may be a great warrior, an able politician, and a learned
prince, but these and similar qualities do not fix him in
the affection of his subjects by any means as surely and
firmly as governing benevolently and justly.

If the Emperor should fail in what his subjects may
consider his proper self-respect, they have the right to
petition to him and to remind him of his error ; the only
condition is that the petition be worded in respectful
language. l!hfi_ ri ght of petition is further .^fnaranteed
when the Emperor departs in his admiui^tratioiLirom the
6ustoms and laws of the Empire^. After pledging his
toyalty, the petitioner begs that the Emperor will reflect
upon the ancient customs and laws and the examples of
his predecessors, and he proceeds to note wherein he appre-
hends they have been deviated from. Therejsanobliga-
tion upon the Emperor^ to read the ^etitioiij^ and if there
is no change in the administration, t he reminder aiay be
repeated.

There are examples where the persistency of the
petitioner has so incensed the Emperor that he has
ordered him to be killed, and although the order, as
is the case with other orders of the Emperor, has been
carried out, the examples are few, because such proofs
of unwillingness to be advised destroy the confidence
and respect of his subjects. The history of China evi-
dences that the agency of a petition, in redress of griev-
ances and setting forth wrongs, is a potent means of
recalling Emperors from acts of remissness to a return
to duty.

An other restrain t, upon thfi Kmpfrnr is the manner
in which his personal history is written. There are
a certain number of men who are selected for their
learning and impartiality, whose duty it is to write
down daily, with all possible exactness, the words and

OOVBBNMENT 59

acts of the Emperor and everything that occurs in his ad-
ministration. These men have no communication with
each other with reference to their respective duties. At
the close of each day each one writes on a separate sheet
of paper whatever may have come under his observation
of the words and acts of the Emperor, and the sheets are
deposited through a chink into an office set apart for the
purpose. The virtues and faults of the Emperor are re-
corded with the same liberality. As an example : *^ Such
a day the Emperor's behaviour was unreasonable and in-
temperate, and he spoke after a manner which did not
become his dignity. The punishment which he inflicted
upon a certain officer was rather the effect of his passion
than the result of his justice. In such an affair he
stopped the sword of justice and partially abrogated the
sentence passed by the magistrate," or else ^^he entered
courageously into a war for the defence of his people and
for the maintenance of the honour of his Kingdom. At
such a time he made an honourable peace. He gave such
and such marks of love for his people. Notwithstanding
the commendations given him by his flatterers, he was not
puffed up, but behaved himself moderately, and his words
were tempered with all the sweetness and humility possible,
which made him more loved and admired than ever."

That the daily histories may not be biassed by either
fear or hope in the account they give, the office into
which the sheets of paper are deposited is not opened dur-
ing Ihe life of the Emperor or while any of his family
occupy the throne. It is when the crown goes into
another line that the sheets are gathered together and
compared, and from them is compiled the history of the
Emperor and his reign. If he has. acted with virtue and
wisdom in his private and public life, he appears in the
history of the Empire as a worthy example for his sue-

60 OHIKA IK LAW AND GOMMSBGS

oesBors, but if negligent of bis own duty and the good of
the people, he is exposed as the object of common censure
and odium.

Although the Emperor is designated in Chinese history
as the son of heaven, he must, in order that his subjects
may recognize his divine commission, govern with recti-
tude and goodness, or his subjects conclude that heaven
has withdrawn the commission and released them from
their loyalty.

** The internal arrangements of the imperial court are
modelled somewhat after those of the boards, the general
supervision being under the direction of the imperial
household Nui-wurfiLt composed of a president or comp-
troller (Tfung Kvoan Ta Ohe'n) and six assessors, under
whom are seven subordinate departments. It is the duty
of these officers to attend upon the Emperor and Empress
at sacrifice, and conduct the ladies of the hai*em to and from
the palace ; they oversee the households of the sons of the
Emperor, and direct, under his Majesty, everything be-
longing to the palace and whatever appertains to its
supplies and the care of the imperial guard. The seven
departments are arranged so as to bear no little resem-
blance to a miniature state : one, the Treasury of Privy
Purse {Ktvang-Chu'Sze)^ supplies food and raiment ; a
second, the Department of Imperial Body-guard (^She-
Wet- CKu)^ is for defence, to regulate the body-guard when
the Emperor travels; the third, the Office of Ceremony
( Chang I Su)^ attends to the etiquette the members of
his great family must observe toward each other, and
brings forward the inmates of the harem (Ta Ting and
Chiang JTsat) when the Emperor seated in the inner hall
of audience receives their homage, led by the Empress her-
self ; a fourth, the Department of CoUectorate (JHwei-Ki-
Sze)i selects ladies to fill the harem, and collects the

GOVERNMENT 61

revenue from the crown lands; a fifth, the Office of
Works Department (Ying T%ao Sze)^ superintends all
repairs necessary in the palace and sees that the streets
of the city are cleared whenever the Emperor, Empress,
or any of the women or children in the palace wish to
go out; a sixth, the Department of Pasturage (King Feng
Sze)^ has in charge the herds and flocks of the Emperor;
and the last is a Court or Judicial Department (JShen
Hing Sze) for punishing the crimes of soldiers, eunuchs,
and others attached to the palace." (Williams.)

From the Emperor to the imperial clansmen (T^ung
ShiK) and nobility is but a step, and these are influential
in the government and the main prop of the throne. The
reigning family is not, as has been stated, native to
* China. It was founded in 1588-1615 a.d. by Hien
Tsu, a Manchu, and all included in the imperial clan are
his descendants or connections. There is a clansmen's
court which controls the imperial clan and regulates
whatever belongs to the government of the Emperor's
kindred.

The kindred of the Emperor are divided into two
branches ; the direct comprises the lineal descendants
(Tiung ShiK) J the collateral QKioh-lo) includes children
of uncles and brothers, the distinguishing mark being a
yellow girdle for the imperial house and a red girdle for
the collateral. The collateral branch is called the Gioro
line, represented by the chiefs of the eight Manchu fami-
lies who aided in settling the crown in that line and are
hereditary princes, collectively called Princes of the Iron
Crown.

The titular nobility is not founded upon landed estate or
the ownership of land, and the title does not confer power,
but is more of an ornament to please and gratify vanity.
There are twelve orders of nobility which are conferred

62 CHINA IN LAW AND COMMERCE

solely on members of the imperial house or clan. It was
the custom at one time for the nobility to reside away
from the capital, and to curtail their influence they were
paid a salary at stated periods. They were also restricted
from engaging in business, but the custom is no longer
enforced.

There are some ancient orders of nobility which are
highly prized as marks of honour because conferred with-
out distinction on Manchu, Mongol, and Chinese, civil and
military, and as a recognition of merit. There are only
two perpetual titles of nobility, and these belong to the
direct descendants of Confucius and Koxinga. That of
Confucius is the "Ever-sacred Duke," that of Koxinga
the " Sea-quelling Duke." Confucius owes his title to
his writings, which have instructed and influenced a
greater number of minds than the writings of any other
man. They have stood the test of centuries of criticism
and are to-day the basis of Chinese law and the classic of
Chinese scholars. The efforts of Koxinga to save China
from wearing the yoke of a conqueror won for his descend-
ants the honour they enjoy. When the native dynasty was
overthrown in 1643 by the Manchu invaders, Koxinga
refused to acknowledge the conqueror, sailed away to
Formosa, drove the Dutch from the island, and made him-
self master of it. Such recognition of the merits of the
scholar and the valour of the soldier is highly creditable
to the reigning dynasty, because both Confucius and
Koxinga were Chinese and to the manor born.

If a closer look be taken into the imperial household, it
will be seen that the Emperor has no choice in the selec-
tion of his wife. The Empress (Hwang How^ sometimes
called Kwoh Mu^ " Mother of the State ") is selected
from certain families of the imperial clan, and the choice
and all the details are arranged by special friends. Neither

GOVBBNMENT 63

the wishes of the bride nor those of the bridegroom are
consulted, but in the selection of a concubine the Emperor
has the freedom of choice. Is not this a reason for un-
happy marriages in China ? The same principle of match-
making and ignoring the wishes or preferences of the
parties most interested not only governs in the imperial
household, but in all Chinese family life. But the Chinese
answer that the number of unhappy marriages in China is
not greater than in other countries, and claim merit for
their marriage custom in that, when the husband is dis-
loyally inclined, he is not required to stray away from his
own home. His concubines live under the same roof as
his legal wife, who still remains the ranking lady of the
establishment.

Marco Polo writes that when he was in China the
Emperor Kublai Khan had four wives whom he retained
permanently as his legitimate consorts, and that the four
were styled Empresses, but that each was distinguished
by her proper name. Each Empress had a special court
of her own with not less than three hundred young ladies-
in-waiting, and, adding to these the number of pages and
eunuchs, gives as many as ten thousand persons attached
to each court. Polo further writes that Kublai had
also a great number of concubines, and that his harem
was replenished every year by selections made from the
most beautiful maidens in the Empire.

But during the time of the later Emperors, and par-
ticularly of the present ruler, but one wife, who is the
Empress, is allowed to the Emperor ; but the practice of
having concubines is not disallowed, and the eunuchs who
still surround the court are often more influential in
shaping the policy of the Empire than are all the members
combined of the Council specially formed to advise the
Emperor.

64 CHINA IK LAW AND COMMEBGB

If I have succeeded in presenting a readable outline of
the Chinese government, I hope I have made clear the
main pivots of its practical administration. If the reader
should ynsh to acquire a more technical knowledge of the
subject, I refer him to the forty-eight volumes, published
by the government, in which he will find prescribed
in detail the duties and responsibilities of the officers of
the several departments. These volumes are the official
record, and the following is a brief synopsis of each
volume : —

Volume I is on the office of the imperial kindred, and
on the management of this department. The Tartar policy
is to keep the majority of the numerous imperial progeny
in a very low condition, as the imperial design is to retain
the princes on a level with the people. Many of them
receive but three taels a month, so that several work as
servants. An accurate register of the births, marriages,
and deaths in the imperial family is carefully kept.

Volume II is on the Ifui Koh^ or Imperial Cabinet or
Grand Secretariat, which consists of six men, generally
old, who have raised themselves to the highest seat in
the Empire ; their duty is to assist the Emperor in the gov-
ernment of the Empire, to circulate edicts, and attend
at sacrifices.

Volume III is on the Eiun Ki CKu^ the Grand Council
or Imperial Privy Council. This is the most powerful
body in the Empire ; the members are chosen by the
Emperor himself. They meet from three to five each
day, and anything that requires despatch and energy is
done by them ; they appoint and remove the residents at
Tibet, Turkestan, etc.; and they supply these colonies.
They select presents for tribute-bearers, and translate pub-
lic documents into and from any foreign languages, etc.

Volume IV is on the Li Pu^ or Board of Civil Affairs,

GOVERNMENT 66

whose duty is to assist his Majesty in all arrangements
concerning the rank, examination, promotion, or degrada-
tion of officers ; the rank and title of the nobility, rewards,
etc. They have at their disposal (subject to the approval
of the Emperor) the patronage of 1984 offices, from the
governor of a province down to the district magistrate,
with a number of inferior civilians.

Volume V is on the Board of Education. The number
of functionaries under this board is 12,996 of all grades.
Of these 8981 are teachers intrusted with the examina-
tions. In the grain department there is one governor and
with him are twelve inspectors. In the salt office, eight
superintendents, five assistants, thirteen inspectors, and
other minor officers. There are in the Board of Inland
Navigation three governors, fourteen managers, thirty-
four deputies, and some other officers bearing military
rank, who have the duty of preserving the dikes and
protecting the navigation of the rivers.

Volume VI deals with the mode of selecting public
servants and with the various ways of promoting officers,
etc.

Volume VII is on the Hu Pu^ or Board of Revenue,
which is charged with the finances, the payment of
salaries, and the management of the granaries. It also
contains geographical descriptions of the various districts
of the Empire, and an account of the available waterways
and mountains.

Volume VIII contains the censuses, cities, towns and
markets, with the degrees of latitude and longitude of
the several provinces, as calculated by the Jesuits.

Volume IX is on the expenditure of the state, and
is arranged under twelve heads : for sacrifices, popu-
lar festivals, allowance for officers, for their servants,
the provincial examinations, soldiers* batta, stipends of

66 CHIKA IK LAW AND GOMMEBCE

couriers, inland navigation, sundries, manufacturers, and
salaries.

Volume X, the details of the income and expenditure
in some branches ; the mines and mint.

Volume XI, a general report on the build of boats, the
transit of grain, and excise duty on merchandise.

Volume XII is on the settling of disputes as to the
pay of the soldiers of the eight Manchu banners, and other
soldiers ; on the supply of the commissariat with money
and food, and on how to watch and overhaul the treasury
and granaries, for fear of roguery.

Volume XIII expatiates on the Li Pu^ or Board of
Rites, one of the strongholds of the despotic government.
It illustrates the hold of etiquette on the people.

Volume XIV dilates on the robes of state worn at the
court, and on the ceremonies to be observed between the
different officers of state when they visit each other.

Volume XV gives an account of all their schools and
colleges, and of how the examinations are carried on.

Volume XVI gives a detailed account of the literary
examinations, and of the duties of candidates for office.
It also treats of the seals of the various departments, as
used under the Board of Rites.

Volume XVII gives a minute account of their temples
and altars, of the various deities and saints worshipped by
the government, and the ceremonies in the temples.

Volume XVIII is a manual of the harem ; it regulates
the dress and etiquette to be observed by ladies of the
court.

Volume XIX is on the presents to be given to tribute-
bearers ; gives an account of those kingdoms that paid
tribute to China ; it is also on the generosity that should
be shown to tribute-bearers that come a long distance,
on sacrifices to the gods of those nationsi and gives a

GOVERNMENT 67

description of imperial banquets to the living and the
dead.

Volume XX is entirely on music, and giv;es the names
of the airs to be played on certain occasions.

Volume XXI is on the Ping Pu, or Board of War, and
gives the number of all officers and garrisons in the Em*
pire, and their reviews.

Volume XXII is a continuation of the former, gives an
account of the navy, the transport service, and the Tartar
garrisons in the provincea

Volume XXIII details the eighteen ranks of military
officers.

Volume XXIV is on martial law, which is very severe;
treats of the nobility that is open to the brave, and of the
protection for the children of those who die on the field of
battle.

Volume XXV treats of the cavalry and cavalry posts ;
as the foot-soldiers are considered an armed police, so the
cavalry are mere couriers to carry despatches.

Volume XXVI contains an account of van, rear, and
centre of the army, its battalions and companies.

Volumj XXVII is on the Ming Pu^ or Board of Pun-
ishments. It details the several modes of punishment,
according to the ancient laws; subdivides the existing
codes ; reduces all the statutes it contains to matters con-
cerning the six boards.

Volume XXVIII dilates on prisons, the commutation
of punishments, assizes, and gives an outline of the seven-
teen principal courts.

Volume XXIX is on the Kung Pu^ or Board of Public
Works. The imperial tombs rank first, then the dikes
and inland navigation. There is a full description of the
imperial city.

Volume XXX treats of the manufacture of arms and

68 CHINA IK LAW AND COMMERCE

gunpowder ; the selection of pearls for the use of the Em-
peror ; the public works along the rivers and canals.

Volume XXXI gives a description of the tombs of the
Emperors and other persons, the various granaries, the
mint, the powder manufactories, etc.

Volume XXXII is on the Li Fan Yuen^ or Colonial
Office, which is managed entirely by Mongols. It regu-
lates the emoluments of the nobility, appoints the audi-
ences of the chiefs, and revises their punishments.

Volume XXXIII describes Outer Mongolia, and con-
tains the names of the different hordes and their chiefs,
from the lowest to the ruling khans. It has a short
account of the trade with Russia and enumerates the
caravan post establishments.

Volume XXXIV gives a more minute description of
the Mongol princes, the tribute they pay, their relation-
ship, the presents they receive, and gives an account of
the nobility, revenue, and situation of Turkestan.

Volume XXXV is on the Board of Censors and their
various functions ; on the Court of Requests, through
which all important papers pass ; and on the Ta-le-^hi^ or
Court of Revision.

Volume XXXVI is on the imperial stud; and the
display of the Tartars when denizens of the wilderness.

Volume XXXVII gives an account of the eating estabr
lishment, and the sacrifices known as the Kwan-lu-shi;
and an account of the annual imperial ceremony of plough-
ing in the fields, and the examinations in the palace.

Volume XXXVIII contains an account of the national
school, in which the sons of meritorious officers are sup-
ported ; and of the Sin Tien Kien^ or Astronomical Board,
which is to foretell coming events, lucky hours, and prepare
the national calendar.

Volume XXXIX is a treatise on Chinese astronomy.

GOVERNMENT 69

Volume XL is on the business of astronomers, and on
the medical college and its various functions.

Volume XLI is on the imperial body-guard, and the
service it performs.

Volume XLII gives an account of the eight standards
of the powers of the Manchus, and their domestic arrange-
ments at births, marriages, and deaths.

Volume XLIII details their duties at reviews, and
their duties when on active service, etc.

Volume XLIV is on artillery, mortars, batteries, etc.

Volume XLV is an inventory of the things in the
treasury, palaces, and temples.

Volume XLVI is on the marriage of the Emperor and
princesses, and on the duties they ought to perform.

Volume XLVII is on the administration of punish-
ment.

Volume XL VIII enumerates all the pleasure gardens
in and around Peking, and their uses; and gives an
account of the eating establishments.

CHAPTER III

LAW

It was stated in another chapter that the power of the
Emperor was unlimited, but that he was careful to use it
as modified by the customs of his Empire. It should not
be inferred, however, that China is without a code of
laws. It is true that in each province there are peculiar
customs, and in essential particulars these customs often
materially differ, but there is, nevertheless, a somewhat
logically arranged code of laws by which the Courts
should be governed, and rights and wrongs defined.

About twenty centuries ago one Li Kwei undertook to
codify the laws of China, and the result of the undertak-
ing is forty volumes which are divided into four hundred
and thirty-six sections. Each volume is devoted to a
certain branch of the law and subdivided into appropriate
divisions. It is a comprehensive collection, systematically
arranged, and clear in statement and meaning.

Since the codification^of the laws by Li Kwei, the suc-
cessive dynasties which have ruled China have amended
or annulled many of the provisions of this code, but it
remains the fundamental structure of Chinese juris-
prudence.

At the commencement of the thirteenth century the
Chinese as a nation first submitted to the sway of a
foreign conqueror, and many of the laws and institutions
now in force do not antedate the last Tartar conquest ;
but while this may be accurate as to mere date, it is a fact

70

LAW 71

that the Tartar did not conquer the manners and customs
of the Chinese. The abrogation of a constitution or of a
law may have been decreed by the conqueror, but when
the rebuilding of the legal fabric was begun, the necessity
for the use of the old materials was too pressing for them
to be discarded.

There never was an instance in history of a conquered
race absorbing its conquerors more completely than the
Chinese have absorbed the Tartars, not only in manners
and customs, but also in laws and language.

The Code which I shall mainly use as authority was
published in 1647, three years after the Manchu Emperor
took the throne. The principles on which it was drawn
up are explained in the original preface, and the following
extract from it is given as a matter of interest and to show
its authentic character. The Emperor Shunchi describes
the manner of revising the Code thus: —

^^ A numerous body of magistrates was assembled at the
capital, at our command, for the purpose of revising the
penal Code formerly in force under the late dynasty of
MingTand of digesting the same into a new Code, by the
exclusion of such parts as were exceptional and the intro-
duction of others which were likely to contribute to the
attainment of justice and the general perfection of the
work. The result of their labours having been submitted
to our examination, we maturely weighed and considered
the various matters it contained, and then instructed a
select number of our great ofiBk;ers of state carefully to
revise the whole, for the purpose of making such altera-
tions and emendations as might still be found requisite.
Wherefore, it being now published, let it be your great
care, officers and magistrates of the interior and exterior
departments of our Empire, diligently to observe the same,
and to forbear in future to give any decision, or to pass

72 CHINA IK LAW AND COMMBBCB

any sentence, according to your private sentiments, or upon
your unsupported authority. Thus shall the magistrates
and people look up with awe and submission to the justice
of these institutions, as they find themselves respectively
concerned in them ; the transgressor will not fail to suffer
a strict expiation of his crimes, and will be the instrument
of deterring others from similar misconduct ; and finally
both ofiS.cers and people will be equally secured for endless
generations in the enjoyment of the happy effects of the
great and noble virtues of our illustrious progenitors."

The public is indebted to Sir Greorge Thomas Staunton
for translating the Code into the English language, but,
strange to say, this interesting and valuable translation
has been allowed to go out of print. The copy before me
was printed in 1810, and, without it, the foreigner, unless
familiar with the Chinese language, would be unable to
learn the laws by which the world's oldest Empire is
governed.

T he Code is bas ed on the Chinese classics, which are
the source and foundation of all Chinese law and the
stan dard by which aU , righta_ .and . punishments are
measured. The classics take the place of books of reli-
gion, model the 'iorm—xrf' government, and define and
regulate authority.

I propose in this chapter to present some of the leading
principles of the laws of China, and I hope to do so with-
out confusing their meaning or boring with unnecessary
details. As the idea of the whole system of laws is penal,
I shall begin with the branch of it which, in modern juris-
prudence, would be classified as the criminal law.

No correct understanding of either the criminal or civil
branch of the law can be arrived at without constantly
bearing in mind the doctrine of_mutual responsibility.
This doctrine is the keynote of the entire system and

LAW 78

gives to the system its penal and relentless character.
'^ It makes an officer careless of his duties if he can shift
the responsibility of failure upon his inferiors, who, at the
same time, he knows can never execute his orders ; it
renders the people dead to the impulses of relationship, lest
they become involved in what they cannot possibly con-
trol and hardly know at the time of its commission.*'
(Williams.) The relentless feature of the doctrine is so
strongly drawn, in connection with the doctrine of mutual
responsibility, that I quote the very language. After
stating that when several persons are parties to one
offence, the original contriver of it shall be held to be the
principal and the rest who followed as accessories, the
language of the Code is as follows: *^When the parties
to an offence are members of one family, the senior and
' chief member of that family shall alone be punishable, but
if he be upward of eighty years of age, or totally disabled
by infirmities, the punishment shall fall upon the next in

succession."

The members of a Chinese family are those who live
as members of the same household, which includes all who
enter by marriage or adoption as well as slaves and
servants. But this definition, while correct, is not
sufficiently comprehensive as to the meaning of mutual
responsibility as intended by the Code. It has l^een
stated that the unit of social life in China is found in the
family, the village, or the clan, and that these are often
convertible terms, and this is specially true as relates to
the doctrine of mutual responsibility. The responsibility
of the family for the act of a member is most cruelly im-
pressed, in the crime of high treason, in another section of
the Code. This offence b " committed either against the
state, by overthrowing the established government, or
endeavouring to do so, or against the sovereign, by destroy-

74 CHINA IN LAW AND COMMERCE

ing the palace in which he resides, the temple where his
family worshipped, or the tomb in which the remains of
his ancestors lie buried, or in endeavouring to do so. All
persons who shall be convicted of having committed these
execrable crimes, or having intended to commit them,
shall suffer death by a slow and painful method, whether
they be principals or accessories. All the male relatives
in the first degree of the persons convicted of the above-
mentioned crimes, the father, grandfather, and paternal
uncles, as well as their own sons and grandsons, and the
sons of their uncles, without any regard being had to their
place of abode, or to any natural or accidental infirmities,
shall be indiscriminately beheaded. All persons who shall
know others guilty of high treason, or individuals having
intent to commit such a crime, and who shall connive at
the said crime, by not denouncing the authors, shall be
beheaded.*' The responsibility of the family for a mem-
ber who commits a lesser offence still follows, but of
course the punishment is in accordance with the degree
of the offence.

Next to family responsibility comes the mutual responsi-
bility of neighbour for neighbour, and the question whether
the neighbours are related does not count in fixing the re-
sponsibility. The deciding principle is that good neigh-
bours make good neighbours, and when a neighbour com-
mits an offence, it is no defence for another neighbour to
say, " I did not know anything about it," for the answer
is, *'You are the neighbour of the offender and should
have known." It is reported that the mother of Mencius
removed three times in order to live in a desirable neigh-
bourhood.

An additional illustration of the doctrine of responsi-
bility is a memorial published in the Peking Q-azette^ relat-
ing that a governor of one of the provinces had reported

LAW 76

that, a parricide haviug been committed, he had had the
houses of all the neighbours pulled down because of their
gross dereliction of duty in not exerting a good moral
influence over the criminal. Another illustration is given,
when a crime has been committed, of the walls of a city
being ^^ pulled down in parts, or modified in shape, a
round corner substituted for a square one, or a gate
removed to a new situation, or even closed up altogether."
Some writers maintain that if this crime should be repeated
several times in the same city, the whole city would be
razed to the ground and a new one founded elsewhere.

In this connection it may be remarked that the ^$king
Gazette is the oldest newspaper of which any account has
been given. If the Chinese government can be said to
have such a medium as a newspaper for its official organ,
the Peking Gazette has long been that medium. J[t pub-
lishes at least what purport to be genuine copies of the
decrees and edicts of the Emperors and the memorials
a^fessed to the throne by the higher provincial officials.

From tlie neighbour to the village is another step in the
doctrine of mutual responsibility. It has already been
pointed out what important functions are exercised by the
head-man of a village, and that these functions are of a
most miscellaneous nature. Although the head-man may
be first held responsible for the conduct of the inhabit-
ants of the village, responsibility attaches more or less to
every inhabitant and makes it the interest of each one to
aid in preserving peace and order. Many of the villages
of China are solely inhabited by persons who have the
same surname and the same ancestors. These persons
have lived in the same village since they began to live at
all, and trace ah unbroken descent for centuries back. A
village so composed is a large family, and the principle of
responsibility is in no sense changed.

I'

76 CHINA IN LAW AND COMMERCE

Both in theory and practice the doctrine of responsi-
bility is savage and cruel in the light of modern jurispru-
dence ; but, constituted as the Chinese are, and have been
since known to authentic history, it is doubtful if the vast
numbers who populate China could be held in obedience
to authority by a principle less searching and merciless.

I have wished to impress the principle of mutual
responsibility in order to render more intelligible other
principles of the Code which will now be presented.

Bomicide, — This is the highest crime against the law
of nature that man is capable of committing, and will be
considered first, as being a serious offence not only in
English law, but in the Chinese Code as well. It is not
my purpose to make comparisons between what is neces-
sary to constitute an offence in English law and under the
Code, but rather to state the principle of the law of China
as understood by the best authorities on the subject. A
different course would necessitate technical distinctions,
which it is my intention to avoid.

According to English law homicide is of three kinds.
It is justifiable, excusable, and felonious. When justifi-
able, there is no guilt at all ; when excusable, there is very
little guilt; but when felonious, it becomes the highest
crime against the law of nature.

The provision of the Code which brings a homicide
under the third classification as above given and makes it
felonious, reads as follows : *^ In every case of persons
preconcerting the crime of homicide, whether with or
without design, against the life of an individual, the
original contriver shall suffer death by being beheaded.
All the accessories to the contrivance, who likewise con-
tribute to the preconcerted homicide, shall suffer death
by being strangled."

Another provision of the Code reads ; ** All persons

LAW 77

goilty of killing in an affray, that is to say, striking in a
quarrel or affray so as to kill, whether the blow be struck
with the hand or the foot, with a metal weapon, or with
an instrument of any kind, shall suffer death by being
strangled/' Immediately following is this paragraph:
^^AU persons guilty of killing with intent to kill shall
suffer death by being beheaded."

The quotations from the Code make it clear that to
convict of the crime of murder, either in English or
Chinese law, there must be proof of a felonious intent.
In the Code the felonious element is expressed by the
words "preconcert or design to kill."

The degree of the homicide, when the killing is by pre-
concert or design, and when done in a quarrel or affray,
is indicated by the manner of the punishment. When the
punishment inflicted is by beheading, the homicide is then
supposed to be murder, but it is not of such a high degree
when the punishment is by strangulation. The Chinese
regard beheading as the most infamous of punishments,
because when the body appears in the spirit-world, it is
disfigured.

The Code provides how accessories shall be punished,
marks the degree between them, and fixes the punishment
accordingly. An accessory to the contrivance, who like-
wise contributes to the perpetration of a preconcerted
homicide or murder, is executed by being strangled. If
the accessory does not contribute to the perpetration of
the murder, the punishment is by whipping and perpetual
banishment.

If a wound be inflicted, in consequence of a previous
design to commit murder, but does not prove mortal,
the original contriver of the deed shall be strangled, and
the accessories contributing to the perpetration shall be
whipped and perpetually banished. All other accessories

78 CHINA IN LAW AND COMMBBOE

who do not contribute in the manner indicated are also pun-
ished by whipping, but are banished for only three years.
Banishment does not mean that the guilty accessory shall
be sent out of the Empire ; in the more aggravated cases
the perpetual banishment is one thousand miles from the
district in which the offence was committed.

There is a further distinction when a homicide has been
preconcerted and attempted, but no wound inflicted. In
this case the original contriver is whipped and banished
for three years, but the accessory is whipped only. The
extent of the whipping provided for in all the above cases
is one hundred blows.

The Code is explicit against an original contriver. It
says : ^^ The original contriver shall suffer punishment as
a principal, though not otherwise contributing in any man-
ner to carry the design into effect ; but the accessories to
the contrivance, who are not guilty of any subsequent overt
act, shall suffer punishment less by one degree than those
of the accessories who acted in some respects upon the con-
trivance, although they did not personally contribute to the
perpetration of the deed.^'

There is no distinction between the punishment inflicted
upon principal and accessory when a murder is committed
for the sake of plunder or robbery ; both shall suffer death
by being beheaded.

From the foregoing extracts from the Code it is evident
that in China the crime of murder caiinot be committed
in the absence of an intent. In the criminal jurisprudence
of all nations having a code of laws there is only one cri-
terion by which the guilt of a man is to be tested. It is
whether the mind is criminal. Neither in philosophical
speculation nor in religion or moral sentiment could any
people who made the slightest pretention to being civil-
ized allow an act to be treated as criminal in the absence

LAW 79

of criminal intent. It is, therefore, a principle of Chinese,
no less than foreign law, that the essence of an offence
is the wrongful intent without which it cannot exist.

As if to remove all doubt as to the meaning of the sec-
tions of the Code referred to on the subject of homicide,
the following is a commentary on the sections which the
translator makes a part of the appendix to his translation.
" In the trial and investigation of a case of preconcerted
homicide, the artifice and preconcerted plan must be clearly
proved, in order to warrant the condemnation of any per-
son to suffer death by being beheaded, as an original con-
triver. In like manner, the act of striking and wounding
must have been proved against those on whom the sentence
of death by strangulation has been pronounced as accesso-
ries contributing to the perpetration of the crime. Fur-
ther, a preconcerted scheme, and the prospect of booty,
must be proved with the same certainty, in order to war-
rant a general sentence of death by being beheaded, against
all the parties, whether principals or accessories, in the case
of premeditated homicide for the sake of obtaining booty."

The responsibility of the officer who presides at the trial
and neglects to discharge his duty as provided for by the
Code is thus fixed : ^' If any magistrate presumes to pass
sentence of death in any of the aforesaid cases of pre-
meditated homicide, without having proof, in each case
respectively, of the previous design, concurrence in the
perpetration, or acquisition of booty, as the case may be,
he shaU be answerable for the lives of the individuals
whose condemnation he pronounced."

A very narrow line is drawn between murder and man-
slaughter. Many cases are reported by Alabaster, in his
** Notes and Commentaries on the Chinese Criminal Law,"
showing that the offence of manslaughter may result from
extremely indirect causes. In some of these cases it is

80 CHINA TS LAW AKD COMMERCE

astonishing how any court could find its way to a verdict
of guilty. In one case a person was held even capitally
responsible because a lunatic he thought was trying to
ravish his sister-in-law ran out into the snow to escape
a beating, and, leaving his clothes in the prisoner's hands,
got frozen to death. In another the prisoner was capitally
sentenced because a rival, trying to avoid him on his rais-
ing a hue and cry, tumbled into a stream, and was drowned.
A third case, cited by Alabaster, was not so seriously dealt
with. In that case the prisoner had caught a thief, and in
leading him to the police station, with a rope which he had
placed round the captive's throat, stumbled and dragged
his captive with him into a stream, where the captive was
drowned. The prisoner was sentenced to three years' trans-
portation, as the court held that the deceased was really to
blame. Some interesting points have been decided when
death results from the unskilful practice of medicine. It
is provided, " that in such cases other practitioners shall be
called in to examine the nature of the wound, and the kind
of medicine administered, and if it then appears that the
error, though of judgment, was purely accidental, the prac-
titioner may be allowed to redeem the penalty for man-
slaughter by fine, as in cases purely accidental, but will
not be allowed to practise any longer. On the other hand
where a practitioner, with a view to increased fees, aggra-
vates a malady, with the result that the patient dies, the
penalty of decapitation will be adjudged.'' It is not an
uncommon offence to deprive a person of the necessary food
and clothing. When this is done with a fatal result, the
courts have held it to be a case of aggravated manslaughter.
In deciding, however, whether manslaughter or murder had
been committed, the intention of the accused would enter
largely as a determining element. The English law is
thus stated : *' If the jury should regard this as a bona fide

LAW 81

case of mutual combat, without previous malice on the part
of the accused, and that mutual blows were given before
the accused drew his knife, and that he drew it in the heat
and fury of the fight, and dealt a mortal wound, although
for the purpose of doing just what he did do, — that is, of
taking life, — or what would be that intent if he had been
in such a state as properly to comprehend the nature of his
act, still it is but manslaughter." The deciding principle
that runs through the law and distinguishes between mur-
der and manslaughter is, that the latter offence only is com-
mitted when the killing ensues from a sudden quarrel or
affray and without malice aforethought. The distinction
in Chinese law is not so clearly drawn, but there is a dis-
tinction nevertheless. In the case where the Chinese physi-
cian was unskilful in his treatment and death followed, it
has been seen that the offence was manslaughter. In an
English case the same principle was held to be sound law.
** In the case of a physician or other person attempting to
cure one of his malady, yet killing the patient through
unskilfulness or gross carelessness, if the person so caus-
ing death is responsible at all to the criminal law, his of-
fence is merely manslaughter, because he neither intended
death nor used with the patient means which he knew
were likely to put the life in peril."

Under the classification of excusable homicide, the rules
which guide a Chinese court to the conclusion that the
homicide is excusable are more complex than in English
law. In English law, where a man doing a lawful act,
without an intention of hurt, unfortunately kills another,
the homicide is excusable. Thus, where a man is at work
with a hatchet, and the head flies off and kills a stander-
by, or where a person qualified to use a gun is shooting
at a mark and undesignedly kills a man. In both in-
stances the act is lawful, the effect is merely accidental.

82 CHINA IN LAW AND COMMERCE

and the homicide is excusable. But if death ensues in
consequence of an idle, dangerous, and unlawful sport, as
shooting or throwing stones in a town, the slayer is guilty
of manslaughter, and not misadventure only, for these are
unlawful acts.

In a Chinese court, however, it is not enough to prove
the intent. The court will carefully consider the weapon,
the position of the parties, and the locality in which the
act was done. The killing will not be held to have been
accidental unless proved to have been clearly so and to
have been unavoidable. The words of the Chinese law,
as translated are, ^^ that the use of the eyes or ears could
not have avoided the accident, and no care or thoughtful-
ness could have prevented it." The plea of excusable
homicide was admitted in a case where the prisoner tried
to get away from a drunken man who desired to wrestle
with him and who, being somewhat unsteady on* his legs,
toppled over on some firewood and killed himself. In
another case, the prisoner had fired a bolt from his cross-
bow in the dark at a fancied thief, and a companion unex-
pectedly getting in the way was killed ; here the plea of
excusable homicide was admitted. But the plea was not
admitted in the case of the prisoner who was out shooting
on the highroad and, accidently firing off his gun, killed
his companion. The locality where the gun was dis-
charged, being the highroad, though little frequented,
was against the prisoner, and he was sentenced to penal
servitude for life a thousand miles from his native place.

Homicide has been classed as justifiable, and in English
law a justifiable homicide is divided into two classes. In
the first class the party is not to blame if the killing be
owing to some unavoidable necessity, without any will,
intention, or desire, and without any inadvertence or neg-
ligence. As, for example, where a person, by virtue of

LAW 88

his office, and in the execution of public justice, puts a
malefactor to death, who has forfeited his life bj the laws
and the verdict of his country. But the law must require
it, otherwise it is not justifiable; therefore wantonly to
kill the greatest of malefactors, a felon or a traitor
attainted or outlawed, deliberately, uncompelled, and extra-
judicially, is murder. The second class consists of homi-
cides committed for the advancement of public justice, in
cases where the act is not commanded but permitted. As,
for example, such homicides as are committed in the pre-
vention of a felony, in the arrest of persons guilty or ac-
cused of crime, in preventing escapes, or retaking the
criminal, or in the suppression of breaches of the peace.
Alabaster has translated into English several cases de-
cided by the Chinese courts which illustrate this division
of homicide. In one of the cases a robber entered a house
at night and the owner of the house killed him on the
spot, where it was not an offence if the robber was armed
and resisted the arrest, thus putting the owner in peril ;
and it would be justifiable to kill the robber, if he were
armed, in self-defence. If a robber enters a house during
the daytime and is killed, the slayer is punished as if a
light offence had been committed. If a man is killed
whUe robbing a standing crop during the daytime, the
case will be considered as one of unauthorized killing,
which is less serious than killing without any justification.
But when robbery is perpetrated in the fields during the
night and the robber is killed, the killing is treated as in a
measure justifiable. When a trespasser enters a house at
night and is shot by the master, a distinction is drawn be-
tween sudden shooting and shooting after deliberation and
threats ; in the former case the killing is in a measure jus-
tifiable, but in the latter the intent enters as an element
into the killing and makes it unjustifiable. The killing

84 CHINA IK LAW AND COMMEBGE

of a person engaged in doing an act detrimental to the
communitj at large, or to the state as representing the
commnnity, is justifiable. If a married woman, while
resisting an attack on her virtue, kills the assailant, the
assault, in the absence of other evidence, would greatly
mitigate the crime of the killing ; but if the woman was a
virgin, the killing would be justified.

As a father is responsible for the acts of his son, the
law very logically invests him with almost absolute power.
Here comes in again the doctrine of responsibility, and a
few decided cases will show its despotic bearing. In the
case of T'ien Hung-lin, reported by Alabaster, the father
burned alive his son and two grandchildren, and being
sentenced to death for one child only, was let off with sixty
blows and one year's hard labour, although the killing was
brought in as with intent. There is the case of a blind
girl who was adopted, and because she would not sing,
was beaten to death by her adopter, who escaped with
ninety blows and two years. Ho Chin-lin strangled his
nine-year-old daughter for illicit behaviour with a boy aged
fifteen ; the father was sentenced to one hundred blows,
the retribution being considered comparatively justified.
A nephew, who tore up the portrait of his great-grand-
father and pitched his bust into a dust-heap, was killed by
an uncle who was punished with one hundred blows only.

In the protection of a daughter's virtue a parent may
justifiably kill, subject to the circumstances of the case.
If an attempt is made to abduct a favourite daughter, even
in the night, and the abductor be killed in the act, the
killing is not entirely justifiable. If an improper advance
is made to a daughter, and the parent should kill the per-
son who made such an advance, whether at the time or
afterward, the killing is not justifiable, but the sentence
of death will be commuted.

i

LAW 86

Chinese law is positive in recognizing the rights of
parents to protect their children, and the rights of chil-
dren to protect their parents. The child who kills the
murderer of a parent is completely justified when the slay-
ing is done then and there as the result of the natural
anger arising from the killing of the parent. To kill a
would-be murderer in defence of a parent the child is
partially justified, which means that the capital sentence,
should one be pronounced, is commuted. The justifica-
tion sufficient for interference has been explained in two
cases. One is that of Ts'ai Ch'nan-chi, when the parent
was on the ground and called for help, and the assailant
was killed while his fist was raised to hit ; this was held
to be sufficient justification. The other case is that of
Wang Hua-Yi, in which the supposedly endangered parent
had not asked for help, being of the opinion that he was
quite equal to the assailant, and it was held that the
justification was not sufficient. The distinction between
the two cases is that in one a battery was threatened and
in the other it was not.

^* In a homicide by relations generally questions of justi-
fication commonly arise where the killing took place in a
relative's defence. To kill in a relative's defence one
who has assaulted him with deadly intent is limitedly
justifiable, and subject to the special considerations of the
case. But the case must be a clear one, and instances are
on record where it has been held in no measure justifiable
to kill in defence of an elder brother. The majority of
the cases, however, as usual arise in connection with the
defence of a relative's propriety merely. So it is in a
measure justifiable to kill a person who attempts to seduce
a relative, either in her defence, or if the offender (alarmed
by interference) turns on the newcomer, in his own ; but
in order to plead the statute the slayer must kill the

86 CHINA IK LAW AND OOMMEBOB

offender in trying to arrest him, and not in a new fight
arising out of vituperation. To be justified in interfering
the relationship must be near.*' (Alabaster.)

The reciprocal duties and rigikte of husband and wife
will be discussed in the chapter on Chinese Family Law,
which is the very centre €f the entire Hgti system.

Mape. — In English law rape is defined as the unlawful,
carnal knowledge by a man of a woman, committed with
force, where she does not consent. It is a doctrine of the
same law that a boy under the age of fourteen years is con-
clusively presumed incapable of committing the offends,
whatever be the real facts of the case. The reason is that
puberty does not often develop itself at an early period,
and indecent disclosures which tend to corrupt public
justice are prevented. In a female the law establishes the
age of twelve years for her legal puberty.

The cases which have been decided by the Chinese courts
mainly sustain in principle the definition in English law
of what is necessary to constitute the crime of rape. In
the Code the doctrine is expressly laid down that criminal
intercourse with a female under twelve years of age, with
or without consent, shall be punished as rape in all cases,
the punishment being decapitation, but subject to revision.
If the child should die, however, in consequence, the pun-
ishment would then be by decapitation. The consent of
the child is not material, unless she had gone astray, when
the punishment would be by transportation. In the case
of Wu C'hi-lu it appeared that consent was given, but that
the woman cried out before completion ; this was rape, but
the penalty was very much mitigated. It would be rape if
consent had been forced from a woman by worrying her
for money she owed the prisoner, or where the prisoner
pretended he had effected his purpose while the woman
was asleep. But when a woman is asleep, and there is no

LAW 87

resistance to the knowing of her, it is not rape. In other
Chinese cases the line of distinction is most clearly drawn
between a woman who has no claim to virtue and one who
has. But at the same time the Code allows of repentance
even in an abandoned woman, and to carnally and forcibly
know one who has reformed her previous character is rape,
and if the previous bad character had been known to the
prisoner, such a plea would not excuse him. There must,
however, be a real return to virtue, not a pretence.
Where there has been a successive rape, the principal is
sentenced to decapitation and there is no appeal, but the
accomplice is sentenced to strangulation subject to confir-
mation. If the victim of the successive rape should die
of exhaustion, the punishment is decapitation for the prin-
cipal and strangulation for the accomplice without delay
in either instance for confirmation.

If the impression prevails abroad that morality is not
appreciated in China, the evidence to justify such an
impression does not appear in the cases decided by the
Chinese courts on the subject. In the cases immediately
referred to above the crime of rape is as accurately defined
and as surely punished as it is in the code of any western
nation. The same is true with regard to the attempt to
commit the crime, and any other indecency offered to a
woman. The woman who kills herself rather than sur-
vive a shame she could not prevent is awarded a tablet
and is revered by the Chinese as sacredly as the Romans
revered Lucretia. By the standard of some western
nations it could be concluded that there was a great deal
of impropriety in China, but a people should be judged by
their own customs and laws, and when these are opposed
to immorality, and when their courts deal out summary
punishments to offenders against morality and propriety,
there is much to be said on their behalf. From such a

88 CHINA IK LAW AKD COMMSBOB

point of view a sweeping and unqualified arraignment or
condemnation on this line cannot be warranted.

Hcm^ehurning. — If a person sets fire to his own house
by accident, he shall be punished with forty blows ; but
when other buildings, whether public or private, are burned
in consequence, the punishment is increased to fifty blows.
If death be occasioned by the accidental burning, the pun-
ishment is one hundred blows. But the person respon-
sible for the accidental burning shall be the only one
liable to punishment. The punishment, however, is by
strangulation ** should the fire extend to any of the impe-
rial temples, or to the gates of the imperial palace. If it
should extend to any of the monuments consecrated to the
spirit of the earth, the punishment shall be less by one
degree." (Code.)

For arson of a man's own house the punishment is one
hundred blows, but should the fire extend to and destroy
any other building, or property stored for public or private
use, the offender shall receive the additional punishment
of three years* banishment. Should the person guilty of
the wilful burning take the opportunity to purloin any
goods or propei*ty, he shall be beheaded, and **if such
burning should cause death or severe wounding of any
person, the offender shall be punished at least according
to the utmost severity of the law concerning intentionally
killing or wounding." (Code.) If the building thus wil-
fully and maliciously burned be empty and uninhabited, or
if fire be wilfully set to grain or other property of like
kind, which is stacked and stored up in fields and open
places, the degree of punishment is one degree less than
that last mentioned. ** All property of the offenders shall,
in such cases, be sequestrated, and charged with the repa-
ration of the loss or damage sustained, whether by private
individuals or by the government, and when such property

LAW 89

does not prove sufficient, it shall be divided into shares
proportionate to the respective* losses of the individual
proprietors and of the government." (Code.)

'^ All accessories, as well as principals, to the crime of
wilfully and maliciously setting on fire any residence,
either of an officer of the government, or of any private
individual, their own only excepted, or to the crime of, in
the same manner, setting fire to any government or private
building, treasury, or storehouse, in which public or pri-
vate property of any kind is stored and deposited, shall be
punished with death, by being beheaded at the usual
period." (Code.)

^^ To convict such offenders, it is necessary that they
should have been taken or discovered on the spot where
the fire took place, and that the fact of their having been
wilful incendiaries be proved by the direct testimony of
competent witnesses." (Code.)

When the burning happens during the commission of
another offence, the accident does not mitigate but aggra-
vates the offence. In the case of Yang Erh, who, having
committed larceny, was running away, and while doing so
dropped a slow-match within the house where he had com-
mitted the offence, and thereby set the house on fire, it
was held that the fire was traceable to the theft, and that
the offence was aggravated to the highest degree.

SoTAsebreaking. — This offence, as distinguished from
houseburning or arson, is against the security of the
habitation, not against the dwelling-house as property.
The offence by itself may not be known to Chinese law,
but the elements which constitute it in English law enter
into the essentials of other offences which are known.
The better opinion seems to be ^^ that the breaking and
entering a house with the intention of committing an
offence therein, is dependent upon whether the offence was

90 CHINA IK LAW AND COMMEKCB

committed. If no offence be committed in the house, the
mere breaking and entering is an aggravated form of
simple trespass dependent upon the nature of the offence
intended, the time, and the general circumstances. If an
offence be committed in the house, the breaking and enter-
ing is a mere aggravation of the offence. So if larceny
be committed therein, it is commonly a form of robbery
with violence ; if rape, it is an aggravated form of rape ; if
homicide, it is a case of homicide dependent upon attend-
ant circumstances. For the question of aggravation, the
entry is in most cases an important point to determine ; but
it can hardly be said that such technicalities as an actual
or constructive breaking are considered. Again, purely
as a question of aggravation, to enter a house by night is
more serious than to do so by day. To enter a boat in
which a person lives is the same as to enter a house."
(Alabaster.)

Perjury. — In English law perjury is defined as the
wilful giving, under oath, in a judicial proceeding or
course of justice, of false testimony material to the issue
or point of inquiry. The dednition of the offence is
broader in Chinese law. A material difference is that in
a Chinese court no oath is required, and the statement
supposed ta be false need not be relevant to the issue. If
the witness draws upon a too vivid imagination and makes
statements misleading, whether relevant or irrelevant, he
would be punished as a liar by being slapped on the cheek
or mouth with a leather slipper, or bambooed. Ordinary
lying in court, when not persisted in, and when no conse-
quences result, is punishable with a hundred blows only.
A mother enjoys some immunity when making a false
statement on behalf of her child, and a wife is apparently
not punished should she give false evidence on behalf of a
husband or of parents or an elder brother. There seems

LAW 91

to be also a special immunity from punishment enjoyed by
relatives testifying on behalf of each other. As there is a
mutual responsibility between relatives, so the law rather
releases its scrutiny or vigilance when they are giving
evidence on each other's behalf.

But the punishment is more severe when the person is
guilty of giving false and malicious information whereby
a man is expressly charged with a crime, or when he is
charged and convicted. ^^ When the accused person, having
been condemned upon such false accusation, shall have pro-
ceeded to the place to which he had been sentenced to be
either temporarily or perpetually banished, although he
should afterward have been speedily recalled on the dis-
covery of his innocence, an estimate shall be made and
verified before the magistrate of the expense he may have
incurred by his journey, that the false accuser may be
compelled to reimburse him to the full amount, and the
false accuser shall likewise be compelled to redeem, or to
purchase for him, any lands or tenements which he may
have sold or mortgaged to defray such expenses, — more-
over, if such unmerited banishment should occasion the
death of any of the relations of such innocent persons, who
may have followed him to his destination, the false accuser
shall suffer death, by being strangled, and besides the
reimbursement aforesaid, half of his remaining property
shall be forfeited to the use of the innocent person. When
any person is accused of a capital offence, and upon such
accusation has been condemned and executed, the false
accuser shall be either strangled or beheaded, according to
the manner in which the innocent person has been exe-
cuted, and half his property shall be forfeited as in the
preceding instance.'' (Code.)

I have selected five of the graver offences known to the
penal Code of China, and pointed out the elements neces-

92 OHIKA IH LAW AND COMMBBOB

Bary to constitute these offences. By that course I hope
to make it plain that, in comparison with the definitions of
similar offences in English law, China has a code of laws
of her own in which crime is intelligently defined and
adequately punished. And this Code of China was pre-
pared and in force when the ancestors of the present Sax-
ons were without any code of laws prescribing what was
right and punishing what was wrong.

This chapter would be extended to the size of a large
book were I to name all the minor offences which are
defined and punished by the Code. If any one desires to
examine fuUy into the intricacies of Chinese law, he has
only to consult the excellent translations on the subject,
where he will learn that China has an orderly legal system,
and that the minor as well as the graver offences have not
escaped the grasp of her lawmakers.

But as it is my purpose to present a few only of the
leading principles of the Code as indicative of its scope,
and in the hope that I have done so as regards the criminal
branch, I will now follow the same order of presei
with regard to what in English law would be t^e civil/
division.

In the mercantile law of China attention must be paid
to the regulations of the different marts of trade. The
local authorities as a rule have ample power to provide
regulations sultaEle'to the~particular pTace and made with
due regard to circumstances. This has proved to be the
policy which has met conditions in a manner satisfactory
to Chinese merchants. And in such a policy the unyield-
ing influence of custom in moulding laws is very apparent.

But there are certain general principles that govern in
the interest of general trade, though even these are not so
well defined as would be expected of a people having the
genius for mercantile pursuits possessed by the Chinese.

LAW

93

In the v arious mart s of, the Empire there are licensed
brokers, commission agents, and ship-brokers, the scope
and duties of whose offices are defined and limited. To
prevent the abuse of any privilege each mart has its own
regulations, and the record kept by each is subject to
inspection every month at the local magistracy. As an
additional guarantee the brokers or agents are selected
from among individuals of wealth and standing, who are
liable to heavy penalties if they fail to perform their duties
with fidelity and honesty. To further s afeguard trade
the monopolizing of markets is provided against and
offenders are summarily punished. With reference to this
particular offence, ^^ the law is broad, comprehensive, and
distensible, so as to include penalties against mercantile
transactions generally, that are inimical to the public
weal." And there are two cases reported of imperial in-
tervention in this class of offences. More than once such
an offence has been the subject of a memorial directly
addressed to the Emperor by a censor, that has resulted in
vigorous investigations. In the Ningpo Northern Cham-
ber of Commerce there is a regulation in the following
words : " It is agreed th at fictitious buying and selling
being illegal, this Chamber entirely interdicts that to its
members. If violations of that law come to our knowl-
edge, we will transmit to the authorities the offender's
name ; assuredly no favouritism will be shown."

The ^aw_and regulations above referred to are aimed at
what, in the language of modern exchanges, is known as
*'8geculating_in ftitures."^ They were meant to apply
to those who entered into combinations to raise or depress
prices ; and to receive any undue profit caused by the ma-
nipulation of a market rendered the offender Tiable to the
punishment that would be inflicted upon one convicted ^
or'sfealihg. Whether enforced or not, it is t he spirit

i^.

/

94 CHINA IN LAW AND GOHMEBCE

and intent of the law of China to guard the^orality ^ \
tradeT

^Partnerships. — Under the laws of China a partner-
ship may be formed for any legitimate purpose. The
terms of the partnership are regulated and the liability of
the partners fixed by the custom of the locality. While
local custom may vary in the great commercial centres
of the Empire, the courts decide questions arising out of
partnership transactions according to a common-sense view
of the particular case. It is not usual for all the mem-
bers to participate in the management of the business, but
t he manag ement is as a rule intrusted to one member or
to a manager who is responsible to the outside world for
the solvency of the partnership. There may be, and not
infrequently is, more than one managing partner, but
whether one or more, the partners who do not participate
in the management are regarded as dormant partners or,
more" accurately, as investors merely. Such investors will
not usually be held responsible for any part of the debts.
T^y wmiH Ifigfl ^^fi napifAl thoy had invested, aad that
would be the extent of the loss charged against them
unless it could be proved that they had in some way con-
tributed to the failure of the partnership. But they would
not only be expected, but required, to do all they could to
produce in court the managing partner or the manager.

If the partnership be one in which all the partners exer-
cise control in the management, and the terms be known,
then in case of failure all the partners would be liable, but
the liability would be measured by the share of the debts
proportionate to the share of each partner in the capital of
the partnership.

If a ]oiafc-6to^ ew n pany ohmild be fonned, the capital
of which WM represented by shares fully paid up, the
shareholders would not be required, in the absenee of a

LAW 95

spe cific agreem ent, i ^ fi fffl^aibfttf^ ^ tfftf iMptWirtifTTi nf thft
Hebts of the company, in the event of failure. The moral
view ia that t he company would^ be regarded as a large
pUf££i5£5Tn^E^HntHe*d^^^^^ would repre'sent the
managing partners, and the shareholders the dormant part*
ners or investors. The^ directors would be held responsi- I
ble for the whole^of the debts, while the shareholders / O
would lose the amount of their paid-up shares. Certainly ^ C*^
this is a very efficient check on directors. ;C^

When a managing partner is unable to discharge the
liabilities of the partnership with his own funds, the ques-
tion may arise how far his interest in the undivided family
property, if any^ can be made available. Each. 6P9. or his
representative has an equal sliare in the family property,
but the father has control of it for life and can waste or
squander it as he pleases, and for a grave moral turpitude
he can, by legal process, wholly defeat the claim of the
son to the succession. But in determining this question
it would appear as settled, that if the managing partner's
share in the partnership had been advanced from the family
property, and the profits derived from the partnership
had been paid into the family, a decree would very proba-
bly be entered against the family property to tlifi. extent
of the debtor's share in it. But how the decree would
be enforced is another question. It would not be enforced
as in English law, for Chinese courts do not as a rule
enforce their decrees or judgments by the seizure and sale
of the property of the judgment debtor ; but a warrant for
his arrest would be issued, and when found, he would be
put in prison' and^ kept there until the debt is paid. Such
proceeding is iipoii the principle that to owe a debt and
to retU8'5"T5r1)e unable to pay it is a criminal offence in
itself, for which the delinquent debtor is liable to be pun-
ished. The arrest and imprisonment is, therefore, the

96 OHIKA IK LAW AKD COMMERCE

necessary preliminary to the enforcement of a decree or
judgment of a court in China, and until the managing
partner of a bankrupt partnership has been arrested, what-
ever may be his share in the family property, it is exempt
from interference or action. A father is not responsible
for the debts of a son, but a son is responsible for the
L debts of his father, though one brother cannot be held
, ^ '- liable for the debts of another brother. The family prop-
i I erty is owned in common, not individually, and the legal
^ V ' ** \ tenants are the famUy council.

ATter the delinquent debtor has been arrested and im-
prisoned, the custom is for the friends of the creditor and
debtor to come together with the view of effecting a set-
tlement, and this is usually effected by a compromise,
whereupon the debtor is released.

If the debtor should prove obstinate, or the friends
should fail to agree upon a compromise, it is known that
a creditor has resorted to other means to make the debtor
pay or to cause his condition to be far more serious.
Sometimes a creditor will threaten to go and hang himself
or in some other way destroy his life if the debtor still re-
fuses to pay. Should the threat be carried into execution,
the debtor may be tried for a serious offence and punished
accordingly. But another means of compelling payment,
which seems peculiar to China, is for the creditor to
go and live in the house of the debtor and at the latter's
expense until he receives payment, and neither the debtor
nor his family will venture to expel the uninvited guest.
If the family property has been divided, then the share
that would belong to the debtor would be treated as other
property owned by him, but a creditor would have no
claim against the other shares.

Several years ago the Chinese merchants residing and
doing business at Hongkong presented a petition to the

LAW 97

governor of the British Colony, in which there were sug-
gestions with reference to alterations in the law of
bankruptcy and the compulsory registration of partners
in mercantile firms. The following is an extract :
^^ Chinese partnership concerns in the interior always use
the real names in drawing up their partnership agree-
ments. Now, whereas according to the Chinese usage,
whenever a shop becomes insolvent, in all cases the full
amount of the deficit has to be made good pro rata by the
partners according to the amount of capital represented
by them. There is, therefore, in the interior no such
practice as using fictitious names. But as in this colony,
the regulations pay no regard to the number of shares held
in each case, if bankruptcy occurs, . . . they should be
bound to pay and make good the amount of its liabili-
ties. If any of such chief partners have no real property
in this colony, in that case, whether the creditors be
foreign or Chinese, the government should consent to send
an official communication to the Chinese authorities re-
questing that the family property which the persons
concerned may have in the country be ascertained, se-
questrated, and sold to provide the due portion of the
amount to be paid."

This petition was apparently drawn for the purpose of
ascertaining with certainty the names and surnames of the
members of a partnership, and this was to be done by
obliging each partner to register his name or surname at
the time when the partnership entered upon the business
it was formed to carry on. It was a step in the right
direction as it rendered all the registered liable and did
not restrict liability to the managing partners only, but it
stUl retained the idea of a limited company, because a
partner was only liable to the amount of the share he had
in the partnership. It went another step in the direction,

98 CHIKA IN LAW AND COMMERCE

of making as certain as possible that the share of a partner
in family property should be sequestrated and sold as any
other property belonging to him. In China, however, the
principles of the law of partnership remain substantially
as I have stated them. And as the fa mily prope rty is
\ owned in common and mainly subject to the decision of
the TamiIy~council, it would be safe to conclude that no
share of "it could besold for the debts of any owner in
common dunngCEe" lifetime of ^is father. "

Mortgage. — In English law the written instrument
which conveys a title to personal property is a bill of sale ;
that which conveys a title to land is a deed. In China
personal or real property may be mortgaged to secure a
debt, as for money loaned, and the ^practice in China of
lending money upon landed security is very ancient.
The Code provides that whoever takes land or tenements
by way of mortgage shall enter into a regular contract
which shall be duly authenticated and assessed with the
legal duty by the proper registrar. Omission to do so
subjects the offender to fifty blows and the forfeiture to
the government of half the consideration money of the
mortgage. And if the mortgagor does not transfer to
the mortgagee "unreservedly the whole produce of the land
upon which the taxes are charged and made payable to
the government, he shall be punished in proportion to the
quantity of the land, which, in addition, shall be forfeited
to the government.

If by any false pretence one attempts to raise money by
giving a mortgage on his land which is already mortgaged,
the amount shall be ascertained and the offender punished
as in the case of an ordinary theft to the same extent,
except that he shall not be liable to be branded. The
pecuniary consideration thus received by the fraudulent
mortgagor shall be returned to the mortgagee, unless the

LAW 99

mortgagee himself was privy to the fraud, in which case
it shall be forfeited to the government. Both the mortga-
gee and the negotiator, or either, when acquainted with
the unlawfulness of the transaction, shall receive the same
punishment as the mortgagor, but in all such cases the
first and lawful mortgagee shall remain in possession.

What is known in English law as the equity of redemp-
tion is also recognized in Chinese law, and the following
is an abstract of some of the principal clauses in the Code
on the subject: ^^No mortgage, or redemption of lands
mortgaged, shall be reversed or set aside, after it has been
signed by all the parties interested, or after it has been
acquiesced in by them for five years. When it is expressly
declared in the preamble of a deed of sale, that the land
is sold absolutely, and not by way of pledge or mortgage,
and there is no subjoined clause providing for the con-
tingency of a further payment to the seller, as a considera-
tion of his making a sale absolute at a subsequent period,
such a deed of sale shall be an effectual bar against all
claims whatsoever of redemption. But if the sale is not
expressly declared to be absolute, or if there is a general
clause of redemption, or a specific one of redemption at
any time after the expiration of a certain period, the
original proprietor shall, according to the terms of the
agreement, be entitled to recover his land upon repay-
ment of the consideration for which it was pledged or
mortgaged. If the original proprietor, at the end of the
period specified in the contract, is still unable to discharge
the mortgage, it shall be at his option, either to retain his
right to a recovery of his land, at any future period, or to
surrender it, and make the sale absolute, in consideration
of the receipt of a further sum to be agreed upon by him
and the mortgagee, or between arbitrators duly appointed
by the parties. If they cannot agree upon the terms, the

100 CHINA IN LAW AND COMMERCE

mortgagee shall have the option of either continuing in
possession, or of reimbursing himself, by remortgaging
the land to some other person, the right of redemption
remaining as before in the actual proprietor. It is, how-
ever, provided that all deeds of sale which are doubtful,
or imperfect, owing to the tenor of the preamble, but
which contain no clause of redemption, shall, if not ques-
tioned or objected to for thirty years from the date
thereof, be to all intents and purposes absolute. Those
lands which have been allotted on the tenure of military
service cannot be pledged or mortgaged, but may be let
for any term not exceeding three years."

A distinction between mortgaging and pledging land
is made in Chinese law. When the land is pledged as
security for value received, its use and income are sur-
rendered in lieu of interest; and when the money bor-
rowed by virtue of the pledge is repaid, the land is fully
redeemed. If the land pledged should not be redeemed
in ten years, the pledge must be converted into a sale by a
new contract.

The essential difference between a pledge and a mort-
gage is, that when land is pledged, the debtor delivers it
to the creditor, but pays no interest on the money bor-
rowed, the creditor accepting the enjoyment of the pos-
session of the land and the income in place of interest,
.whereas in a mortgage the debtor only secures the debt
on the land and pays interest, but does not deliver pos-
session. The creditor has only an action against the
land if the debt is not repaid by the debtor. This refers
to land mortgaged for money loaned and not to another
form of mortgage where the mortgagee enters into pos-
session as explained in the chapter on Tenure and Trans-
fer of Property. As already indicated, either real or
personal property may be mortgaged or pledged ; but

LAW 101

the custom is, when it is desired to raise money on per-
sonal property, to put it in pawn with one of the many
pawnshops scattered throughout the Empire. When
property is pledged, the contracting parties exchange two
instruments in writing, one of which is signed by the
party delivering the property, and the other by the party
receiving it.

Interest. — " Whoever lends his money or other property
of value, in order to derive a profit from such transaction,
shall be limited to the receipt of interest on the amount
or value of the loan, at the rate of three per cent per
month, and, whatever the period of years or months may
be, upon which is due at the day of repayment, no more
shall be received or demanded than the original sum lent,
and the lawful interest thereon, to any amount not ex-
ceeding the principal." (Code.)

The above provision which I have copied word for
word from the Code clearly states the legal rate of inter-
est in China, and there is a provision immediately follow-
ing which punishes transgressors of this law with forty
blows for every offence *^ and as much more severely as
may be proportionate to the amount of the excess of
interest," though punishment shall not in any case exceed
one hundred blows. And '^on the other hand, if the
debtor does not fulfil his agreement with the creditor,
both in respect to repayment of the principal and the
payment of the lawful interest, he shall be liable to
punishment," according to the following scale: —

^^ If three months after the stipulated period, he falls
short of the amount due his creditor by five liang or
upward, he shall be liable to a punishment of ten blows,
and to an increase of punishment at the rate of one
degree for every additional month of delay, as far as forty
blows.

102 CHINA IN LAW AND COMMBBCE

'^If three months after the stipulated period he falls
short of the amount due his creditor by fifty liang or
upward, he shall be liable to a punishment of twenty
blows, and to an increase of punishment at the rate of one
degree for every additional month of delay, as far as fifty
blows.

^^ If lastly, three months after the stipulated period, he
falls short of the amount due his creditor, by one hundred
liang or upward, he shall be liable to a punishment of
thirty blows, and to an increase of punishment at the rate
of one degree for every additional month of delay as far
as the limit of sixty blows, and in this as well as in the
preceding cases the debtor shall continue responsible for
the amount of the principal and interest lawfully due."
(Code.)

There is an express provision punishing the creditor
who attempts to collect his debt by irregular means, such
as seizing the property of the debtor, accepting his wives
or children in pledge for payment, or seizing by force and
carrying off the wives or children of the debtor. In the
latter instance, if the creditor be guilty of criminal inter-
course with the females so seized, he shall suffer death, but
when the wives or children are accepted and not seized,
and the creditor has criminal intercourse with the females,
he then receives severe corporal punishment only.

In the case of Cheng Ch'ien Ts'ai, a creditor seized six
cows owned jointly by the debtor and the debtor's brother,
and killed the debtor in the course of the robbery, the
Board insisted upon the homicide being considered as
happening in the course of an ordinary affray, and not in
the course of robbery, inasmuch as the debtor had an
interest in the cattle, and the creditor clearly seized them
more or less in consequence of being unable to recover
his just rights. The principle is that the creditor must

LAW 103

not take the law into his own hands. A not uncommon
solution of the difficulty, says Alabaster, is for a creditor
to hang himself outside his debtor's door, and get the
latter strangled for it.

The legal procedure to recover the debt is to present
a petition to the necessary effect to the magistrate, who
thereupon furnishes an officer with a warrant to collect
the money. Armed with this warrant the officer arrests
the debtor, and keeps him in custody until the debt is
paid, or if there be a delay in payment, he, with a view
to expediting it, takes the debtor from time to time to the
magistrate to receive a certain amount of castigation.

But it is by no means to be understood that the highest
rale of legal interest allowed by law is always charged.
^There are two considerations which generally influence
the rate, and they are the advantage to be gained by the
use of the money, and the amount of risk which the lender
takes in advancing the loan. If the condition of business
is prosperous, of course the rate will not be high, nor will
the rate be high when the business or pecuniary situation
of the borrower is high class, and the risk consequently
small, and when loanable capital is plentiful. These are
the fundamental considerations which materially govern
the rate of interest to be charged in business transactions
in China, and it is easy to see that in one business centre
the rate may be low, while in another it may be high.
And as each business centre has its own peculiar trade
regulations, so the charges for the use of money are fixed
accordingly, and the law does not propose to do more
than establish the maximum rate and enforce any agree-
ment the parties may have made. If the terms of the
agreement are not complied with, the offender is punished,
thus illustrating the general feature which governs in the
civil as well as in the criminal law. ^^ Those who have

104 CHINA IK LAW AKD COMMEBCB

observed attentively the manners and institutions of China
have been struck by two things very fit to attract atten-
tion. On the one hand, the generally penal character of
the Celestial Empire. Every ordinance of the law, every
regulation, is made under penal sanction, not only in
criminal affairs, but also in matters generally civil. All
irregularities, faults, or negligence, and so forth, that in
European legislation would entail only forfeitures, inca-
pacities, errors, or some slight civil reparation, are pun-
ished in China by a certain number of strokes of the
bamboo. On the other hand we find jlU China with its
official religion, its public and private ceremonial, its
political institutions, its police and administration, and
its vaat population governod on the one single prin-
eipto of filial piety, a principle which hm asteiuifidjtajthe
re^Mot due to tlie Emperor, and his delegates, and which
is in realitylittle less than the worship of Miei—t iwlita-
tioBs*" (Hue.)

In a subsequent chapter on the Tenure and Transfer of
Property, other principles of the laws of China will be
referred to, and the law which governs the relations of
the family will also, because of its supreme importance,
be made the subject of a separate chapter. I will con-
clude this with some extracts which have been translated
from a " ChineseCoUection of Leading Cases " by J. W.
Jamieson, with his own comments interspersed, the deci-
sions of which, having been carefully revised and approved
by the central government, are held to establish prece-
dents whose validity is equal to statute law :~ —

iiestitution of Stolen Property. — (1) All persons
accused of theft or robbery shall, on being sentenced, be
subjected by the official concerned to a rigorous examina-
tion as to whether or not they are in a position to make
restitution. Should it be clearly proved that they are

LAW 106

unable to do so, a solemn declaration to that effect is to
be made out, and, together with a report of the circum-
stances of the case, submitted through the higher authori-
ties to the throne. The greater proportion of criminals
of this class belong to the poorest of the poor, and it
would be useless to subject them to imprisonment until
able to pay. By this means, however, they can be dis-
missed after execution of sentence.

Defaulting officials must in all cases be detained in
prison for over a year, during which time severe pressure
is to be brought to bear on them, and only if, after the
expiry of this period, it be proved that the offender is
absolutely unable to refund, can application be made to
the throne to consider and decide what course is then to
be pursued. Otherwise it would be very easy for officials
to plead inability to pay, trusting so to get off and enjoy
the m-gotten gains they had, in the meantime, caref uUy
concealed.

(2) Sun Ying-f eng, a cashiered brigadier-general, appro-
priated taels 180 of the public funds, and by bribery and
corruption amassed a further sum of taels 1450.

He was brought to trial and banished to Ili, an order
being issued for the recovery of both sums from his wife
and family ; this sentence received imperial sanction, and
the case was closed.

Some time afterward the governor of Hunan, in a
memorial, prayed that proceedings be stayed as the family
were in a state of abject poverty and quite unable to make
any restitution.

In consequence hereof the repayment of the sum ob-
tained by bribery and corruption was not insisted on,
especially as more than a year had elapsed from the time
when proceedings were first commenced.

The other sum of taels 180, being public money, could

106 CHINA IK LAW AND GOMMBBCS

not, however, be dealt with in the same way, and as
it appeared that Sun had embezzled this money while
stationed at Ch'ao-chow, the governor of Canton was
instructed to devise some means of making good the
amount.

From this it would appear that money appropriated
from the government chest (or as it is technically called
Kwan Kuan Hang in contradistinction to money obtained
by squeezing, which is known as Ju Kuan Tsang) must
be made good, if not by the culprit himself, then by the
district of which he was in charge.

An extract from the Code is likewise quoted to the
effect that in all cases where the amount of Kwan Kuan
T$anff exceeds taels 10 and that of Ju Kuan Hang
taels 20, the delinquent is to be imprisoned and subjected
to pressure {ehien ekiu) for a period of over a year. See
paragraph (1).

It may here be remarked that funds appropriated by
officials, or otherwise made away with and recovered with
a previous reference to the board, are styled appropriated
and reported ; those recovered by the officials on their own
responsibility, appropriated but not reported. Of these lat-
ter a table is to be drawn up and sent in at the beginning of
every year, within the first two months after the opening
of the seals.

(8) It frequently occurs that, owing to remissness on
the part of the district magistrate, robbers are allowed
for long periods to go unpunished, and it is the practice
in such cases to make the magistrate himself responsible
for the amount carried off, to the undermentioned extent.

Where the robber is arrested, but none of the stolen
property recovered, and the latter does not exceed taels
100, the magistrate shall make good the whole amount.
Where the value of the property stolen exceeds taels 100,

LAW 107

he shall be called upon to make good from ten to twenty
per cent, according to his means. If the magistrate, how-
ever, succeed in recovering any of the stolen property, no
matter how little, he shall not be held responsible for the
remainder. It is likewise ruled that all goods belonging
to the robber shall, on recovery, be handed over without
reserve to the party robbed. This does not apply to cases
of thieving or petty larceny.

The object of this system of holding officials responsible
is to insure their prompt action whenever a case of rob-
bery is reported, as otherwise the robber is given time to
make off with his booty and spend it, to the serious loss
and inconvenience of the party robbed. The responsibility
of the official can, however, only be fixed after the arrest
of the criminal and after an acknowledgment by the latter
that the list of stolen property handed in by the party
robbed is correct, as it would be manifestly unfair to cause
restitution to be made on the basis of fictitious values, and
thus to expose the official to the designs of unscrupulous
persons, who would not hesitate to exaggerate greatly the
amount of which they had been robbed, or even go to the
length of reporting robberies which had never taken
place at all.

Should an official be ordered to make good an amount,
such as the above, but, before having made payment, be
degraded to a lower rank for some other offence, or die,
the matter may be allowed to drop.

Fraudident Sale of Lands and TenemenU. — (1) Li
Sheng, the proprietor of a coal-mine in the Peking district,
being on account of illness unable to look after it himself,
appointed Chang Tung-sheng to manage it for him. The
latter asked for some written authority that he might
produce, if called on to do so, and fraudulently induced
Li to sign a document giving him the mine. He then

108 CHINA IK LAW AND COMMEBCB

inserted his own name in the contract with the workmen,
who duly appended their signatures thereto.

As he had received instructions from Li to look after
the mine and in addition had written authority to that
effect, his offence is not quite so aggravated as that of
wrongfully taking possession of the estate of others, and
he was accordingly sentenced to a punishment one degree
less severe than that for the latter crime ; namely, one
hundred blows and banishment for three years.

(2) An Ch'i-se held, on lease from one of the imperial
princesses, ninety-nine mow of land which had been allotted
to her by imperial decree and was thus government prop-
erty, so to speak. He was repeatedly called upon by the pre-
fect to give up the land and pay the due rent, and on
being arrested, made his escape. After a few years he
returned and again took possession of the land, alleging
it to be his own property and refusing to pay rent for it,
at the same time inducing the other tenants to pursue a
similar course. In accordance with the punishment due
to all those who take possession of land in a government
settlement, if it be over fifty mow in extent, he was sentenced
to transportation to the nearest frontier.

(8) T'ung Wu, a small official in the Nei Wu Fu, had
a piece of ground which he gave up to the government,
by whom it was entered on the banner roll as public prop-
erty, and as such it could not of course be disposed of by
private sale.

It was lent to him shortly afterward to build a house
on, when he took the opportunity of selling it, alleging it
to be min-ti (private land). For this he was punished in
accordance with the number of stripes allotted to all who
fraudulently dispose of other people's property, increased
by two degrees, as the property he had disposed of be-
longed to the government.

LAW 109

(4) Huang T'ien-jung, a soldier who had been dis-
missed from the service, although well aware of the law
applying to uncultivated ground (the expression used is
uncultivated ground, and signifies government property,
on which no trespassing is allowed), forcibly took posses-
sion of a piece of such land and let it out to a tenant,
who paid him rent as if it were his own. It appeared,
however, that his late grandfather had been the first to
cultivate the ground and raise a crop on it, so that he
could hardly be punished to the full extent for his offence,
and his punishment was reduced by one deg^ree; but as
he was an ex -soldier, this reduction was counterbalanced
by. the increase of one degree, which falls on such in-
dividuals.

(5) Sien I-yueh took possession of land which had
formed in the middle of a river, and proceeded to sell the
same. On the appearance, however, of a proclamation by
the district magistrate forbidding such practice, he dis-
continued selling. As his case differed from that of those
who fraudulently take possession of government and
other people's property, his punishment was reduced by
one degree.

(6) Hsu Pao-ohow b o u g h t m pieee of land from Hsu
Chueh-waiM altiKiiigh at ^e time aware of tiw laot that
thw gnwiMl was part «£ a lot wUoh IhmI dwssiiod by in*
heritaBoe to the whole of the Hsa family* which Chueh-
waa had no right to sell, notwithstanding his statement
to the effect that it was ** reformed land," which had been
duly ente^d on the register. There is no provision made
in the law regulating the punishment of those who buy
land, although aware of the fraudulent nature of the trans-
action; but in the law of mortgages it is laid down that if
the mortgagee is aware that the mortgagor is raising a
second mortgage on a piece of land, and notwithstanding

110 CHIKA IN LAW AKD COMMEBOB

such knowledge closes the transaction, his g^ilt shall be
held equal to that of the mortgagor; so in the present
case Hsu Pao-chow% the buyer's guilty was held to be
equal to that of Hsu Chueh-wen, the seller.

(7) Wang Ch'ao-tso mortgaged a piece of land to Ohow
P'ing-fu, reserving to himself the right of redemption.
As the soil was extremely fertile, Chow tried to get pos-
session of it in the following way : he made an exact
copy of the deed of mortgage, and fraudulently inserted
the following clause, ^'Should the mortgagor through
lack of funds be unable to redeem the land, the mort-
gagee is permitted to pay the land tax on it in his
stead," hoping that if his payment of the land tax were
officially sanctioned, he would be able to debar Wang
from redeeming the property. In summing up the case,
it was held that, as he, as a matter of fact, had an interest
in the land, his conduct was not so reprehensible as if he
had taken possession by a fictitious agreement, without
due pecuniary consideration, of the land of another, and
his punishment was accordingly reduced by one degree.

Note. — It will be seen that this case is a further illustration of
the fact that, in the absence of other documents, duly stamped offi-
cial receipts for land tax paid, form a fairly valid title.

(8) Ch'u Chin-hsi was employed by Chile-changer to
look after his ancestral tombs, but took the opportunity of
mortgaging, for pecuniary consideration, twenty-five mow
of adjoining ground which had been set apart to defray
the costs of sacrifices. As no provision is mad^ for such
an offence ; namely, that of a servant mortgaging part of
his master's burial-ground, he was sentenced to punish-
ment in accordance with the rules laid down for punishing
sons and grandsons who mortgage part of the ancestral
grave property.

CHAPTER IV

FAMILY LAW

The subject of this chapter is the most important in
the legal Code of China. It would be impossible to under-
stand or appreciate the customs and laws of the Chinese
without some knowledge of their family life. In China
the family is the centre about which everything revolves.
More than any other institution it has contributed to shap-
ing the history and maintaining the long life of the Em-
pire. ^^75?tever is conservative in Chinese character is^
directly traceable to family influence^ and during all the
centuries through which China has lived that influence
has been fundamental and sustaining.

In Chinese l aw the term "family" has a very compre-
hensive meaning, and its full significance is determined as
much by custom as by law. The family embraces all the
membera'of {he same household that stand under one
head. There is no distinction between those who have
entered the family through marriage or adoption^ and ser-
vants^ an 3 slaves and the children of sucH are embraced in
th'e "^membership. There isa certain kind of relationship
existing between the members^ regardless of how each
entered the family, and this relationship carries with
i7 a degree of responsibility measured by custom which is
inseparably mixed in the Chinese mind with law.

The idea of a family is usually preceded by that of
marriage, but not necessarily, and in China, by reason of
the principle of adoption and concubinage, large families

HI

/

112 CmKA IN LAW AND OOMMERCB

are not unusual when there has been no marriage in the
legal sense of the Code.

Neither custom nor law allows a Chinese to have more
than one legal wife, and if he transgresses he would be as
promptly punished under the Code as if conyicted of big-
amy under English law. But while forbidden to have
more than one legal wife, he may have as many concubines
as he feels able to take care of, and there is this peculiarity
that his legal wife is selected for him, while his concubines
are chosen by himself.

The Code does not prescribe any age for marriage, but
it is an established custom that males marry when over
twenty years of age, and that females are rarely given in
marriage before their fifteenth year. Modern legislation
has prescribed a certain age at which puberty is supposed
to be attained, and named that age for the candidates as
a prerequisite to marriage ; but such a prerequisite is not
known to the law of China. The belief that once prevailed
that puberty is attained at an earlier age in hot than in
temperate climates has been discredited by later investiga-
tions, and it is now established as a scientific fact that in
China puberty commences at about the same age as in
Europe. And also the belief that early marriages are
common in China is just as far from being accurate.

It is the custom to provide early in life a suitable wife
for the son and a suitable husband for the daughter, and
this may be done during infancy, or even in anticipation
of birth, but it is not the pi*actice for the marriage to take
place until their characters are formed.

When the candidates for matrimony are of sufficient age,
and it is intended that the marriage be contracted, there
shall be a clear explanation and understanding between the
families directly interested. The candidates themselves
are not consulted and, as is probable, may never have

FAMILY LAW 118

met. The preliminary inquiries refer to the health and
ages of the candidates, and to the question whether they
are children of their parents by blood or by adoption. If
an objection be made at this stage by either of the con-
tracting families, the proceedings shall be carried no
farther; but if they approve, then the marriage articles
are drawn up and the amount of the'^arriage presents
determined upon.

It is not usual, however, forjfche preliminary proceedings
to be conducted by^the contracting families. There are
invariably mutual friendsof the families who perform that
office, and who are known as negotiators or go-betweens, a
principle which not only governs in this highest and most
sacred contract, but in almost every other contract or deal-
ing in which Chinese are the parties.

There is to be no trifling or flirting after the affiance
has been regularly made. If the family of the intended
bride should repent having entered into the contract and
refuse to execute it, the person amongst them who had
authority to give her away shall receive fifty blows, and
the marriage shall be completed in accordance with the
original contract. And to justify the punishment as well
as the enforcement of the contract, it is not necessary
that it be reduced to writing. It will be sufficient evi-
dence of the agreement between the parties if the mar-
riage presents have been accepted.

The rule works both ways. If the family of the in-
tended bridegroom, after having agreed to the contract,
repents thereof, or seeks to avoid it by making marriage
presents to another woman, a similar punishment shall be
inflicted on the person among them who had authority to
give him away, as in the case of the bride, and the mar-
riage shall be completed in accordance with the original
contract.

114 CHINA IK LAW AND GOMMEBOB

The law has in view the requirement of the utmost good
faith in the marriage negotiations and the fulfilment of
the stipulations of the marriage contract. It will not
tolerate deception of any kind, nor will it permit a
marriage contract to be annulled, except for causes spe-
cially provided for, which will be stated hereafter. As
the affianced parties have no share in the negotiations,
it will be seen that the respective families are held respon-
sible, and that the penalty for any unseemly conduct
attaches to them and to the negotiators or go-betweens
when they have not been open and frank in the perform-
ance of their duties as prescribed by custom.

After the marriage the husband may proceed, if he has
not already done so, to fill his house with as many concu-
bines as he feels competent to support ; but there can be
but one wife in the house, and she is the superior female
in rank and authority. The children born in such a. home,
whether the children of the legal wife or of the concubines,
are considered the children of the former, and they regard
the legal wife as their mother.

The husband is permitted to choose his concubines from
females of any grade. He cannot force a woman, how-
ever low her grade in the scale of life, to become a concu-
bine ; but, if willing, he may choose a slave, and all the
concubines are of even rank among themselves. The
Code is explicit in denying to the husband the right to
degrade his wife to the rank of a concubine and fixes the
punishment should he attempt so to degrade her ; but there
are some authorities who have concluded that for sufficient
reason the wife may be degraded. I rather, however,
incline to the opinion that, when the reason would be
sufficient to empower the husband thus to humble his
wife in her own home, he would have the right to divorce
her, which would be more honourable to him and less

FAMILY LAW 115

degrading to the family. The language of the Code is :
*^ Whoever degrades his first or principal wife to the con-
dition of an inferior wife or concubine, shall be punished
with one hundred blows. Whoever, during the lifetime
of his first wife, raises an inferior wife to the rank and
condition of a first wife, shall be punished with ninety
blows, and in both cases, each of the several wives shall
be replaced in the rank to which she was originally entitled
upon her marriage."

Of the absolute impediments to marriage, it has been
noted that, while the law gives no ag^ for the male or
female, custom has named the age for each, which is
generally respected, so much so as to become the rule,
with very few exceptions. Custom further recommends
suitability of age on the part of the contracting parties,
and opposes marriages between young girls and old men,
as it also does marriage before the age when puberty is
usually attained. If no notice has been given in the
marriage contract, disease and other defects, such as
insanity, deafness, and dumbness, would be classed as
absolute impediments. A eunuch, of course, is not per-
mitted to marry. As he is compelled to serve and live
in -the palace, that office alone would debar him from
marrying, if nature or the hand of man had not unfitted
him for married life. But there are eunuchs who were
the fathers of children before their mutilation, and such
may obtain permission to visit their families. And one
who has resided in Peking long, and has taken the trouble
to study the intrigue of palace life, need not be informed
that a eunuch has, more than once, acquired the influence
and power to direct the policy of the central government,
and the greatest nobles of the Empire have thought it
prudent not to oppose openly such influence. When
a eunuch has risen to such a height of honour and influ-

\v

,K^ /I >116 CHINA IN LAW AND COMHEBCE

r , " . » enoe, he will probably crown it by takiiig. au.wife, pro

^rma^ and adopt aTson for thfi aucceasion.

There are several impediments to marriage on account
of relationship, and it is always implied that those who
bear the same family name are related. At one period of
Chinese history the number of families may have been the
same as the number of clans. The idea is at present alive
to the extent that marriage within the clan, as well as
within the family, is forbidden. If the grade of relation-
ship is agnatic, the marriage is prohibited. It is the
opinion of George Jamieson that while cognates cannot
marry any one of the generation above or below, they
may marry any one of the same generation, but not
agnate. For the relationship by adoption, says MoUen-
dorff, the prohibition does not remain in force after the
first adoption has been dissolved by a new one.

There is no impediment, as relatives, to marriage between
the husband and his wife's sister. Before 2000 B.C. the
Emperor Shun married the two daughters of Yao, and
ever since such marriages have been of frequent occur-
rence in China. And wives do not customarily object,
because as the husband may marry one of his concubines
after her death, she would rather have her sister take
her place and share his affection. As there cannot be
a legal marriage between those bearing the same family
name, there is therefore no relationship between the
relatives of the husband and those of the wife, and no
impediment in the Chinese mind to a marriage between
a husband and his deceased wife's sister. That is the
logic of their reasoning.

But, there being not more than four hundred and forty
family names for a population of four hundred millions,
it is obvious how severe in application is the doctrine pro-
hibiting marriages between those bearing the same name.

FAMILY LAW 117

Whole oommunities have been known composed of people
with the same surname. When any member of such a
community desired to marry, he had to undertake a long
and expensive journey or voyage. The Chinese, however,
have not been slow in finding expedients to avoid much of
the hardship. In the case where the name has two distinct
origins, persons of the same surname may intermarry,
provided their line of ancestry can be traced from the
separate stock. On the other hand, families of the same
ancestry have branched off under a different name and do
not intermarry. The broadest distinction in favour of the
expedient seems to have been made during the reign of
the Emperor Yung-lo, when those families which took part
in the grain transport were called military &milies and
the others, families of the people. Since that reign this
distinction has been maintained and intermarriages per-
mitted.

Impediments to marriage on account of affinity are very
succinctly stated by MoUendorff. *' Marriage is not al-
lowed with sisters of the wives of ascendants or descend-
ants, with the father's or mother's sister-in-law, or with
the sister of the son-in-law. It is forbidden with the
step-daughter and with female relations within the fourth
degree of relationship, with a widow of a relative of the
fourth degree, or with the sister of the widowed daughter-
in-law. Marriages with widows of relatives of a nearer
degree are considered incestuous. Decapitation is the
punishment for marriage with the father's or grand-
father's former wives, or with sisters of the father."
According to a Jewish custom, marriage between a widow
and her deceased husband's brother was not interdicted,
but only allowed when the widow was childless. In
ancient times such was the custom among other nations
and it is still the custom in the Caucasus ; but Jamieson

118 OHD^A IN LAW AKO COMMBBCB

and other high authorities have expressed the opinion that
it is not practised in any of the provinces of China because
of the severe penalty for it, which is, that ^^ whoever
marries his brother's widow shall be strangled.'*

In China public opinion is very much against a widow's
marrying at all, and one who refuses all offers of marriage
is held in the highest consideration. The greatest impor-
tance is attached to the period of mourning and time to
remain widowed, and any departure from either is regarded
as most reprehensible. During the period of mourning
every propriety would be violated should any one marry
whose duty it was to conform to any of the rules for
mourning, and besides there is a prohibition against marry-
ing during such a period.
^A . \ Another prohibition is that an official is not allowed to

\ \- marry a woman under lis jurisdiction, or.,Qut-Qf ajamily

,- ^~ \ that has an interest in the performance of his official duty.
And in China no official can hold office in his native prov-
ince, nor can he sit as judge in a case if one of the parties
be related to him. But if the official has been adopted into
a family of another province, he can acquire a right of
domicile in the province of his adoption and may then hold
office in the province originally his native one.

The principle of Roman law which prohibited a marriage
between persons who stood to each other in the relation of
guardianship or of tutor and pupil, was not necessary in
China, because only relations or adopted fathers are able
to exercise the right of guardianship and to acquire
through it the power of a parent, and between such there
are prohibitions against marrying.

The Code enjoins equality of rank between persons
who marry, and an official is not allowed to marry an
actress or a singing girl. Such marriages are also for-
bidden to the sons or grandsons of nobles with hereditary

\

FAMILY LAW 119

rank. The punisliineiit is degradation in rank and ulti-
mately the loss of it.

In China difference of religion has no influence upon
marriage. A prohibition is aimed at those Buddhist and
Taoist priests and nuns who do not shave their heads but
bind the hair in a net or head-band ; these are not allowed
to marry. But when such shave their heads and plait
their hair like other Chinese, they may marry. If a priest
should obtain a woman under pretence that she is to
marry another and then marries her himself, he is severely
punished.

A male slave cannot marry a free woman, nor can a run-
away female slave marry. In the latter case the reason
is that the female slave can only lawfully be given away
by her master.

The impediments which have been pointed out render
a marriage already concluded null and void, but igno-
rance of them at the time of the marriage exempts the
parties from punishment.

^^ In accordance with the sense of the marriage contract
the parties who signed it are punished if the marriage laws
have been transgressed, the go-between only if he was
aware of the illegality; but husband and wife are not
punished unless they were 9ui juru. If the father, grand-
father, or uncle signed the contract, they alone are pun-
ished ; if it was another relation, he is punished as
principal, and husband and wife as accomplices. The
purchase money is in each case forfeited, except when
the parties were ignorant of the existence of the impedi-
ment." (MoUendorff.) The Chinese do not admit that
impediments to marriage can be removed by a dispensa-
tion, and with the Jews dispensation was also inadmissible
as a means for removing such impediments.

Although a wife shares the rank and honour of her hus-

120 CHINA IK LAW AND OOMMBBGE

band, she owes him implicit obedience and does not even
have the privilege of leaving the house without his con-
sent. The law which governs the relations of husband and
wife to each other assigns to the wife a very servile posi-
tion in the household. Marriage gives her but few rights,
and she is practically in the power of her husband. After
the signing of the contract of marriage and the naming of
the day she goes to the house of her husband and from that
moment she ceases to have a wish which he is compelled
to respect. She has no right to demand of him conjugal
fidelity, but if she sins against it she commits a heinous
crime. And if she disobeys her husband, he may sell her
to another as a concubine. As in Roman law, the wife
in China after the death of her husband belongs to his
family. If she leaves it either to return to her own or to
marry again, she not only leaves behind her husband's
estate, but all that she brought with her. But there is, at
least, one provision favourable to the wife; if the hus-
band should be the oldest member of his stock then in
power, after his death the power would be transferred to
the wife, and she would manage the family estate.

Unless it is otherwise stipulated in the contract of
marriage, all the property of the wife, however inherited
or acquired, belongs to the husband ; but the husband
is not responsible for her debts, unless she was m juri9
before marriage or had no family, when he would be
responsible. It is not the custom, however, to refuse to a
divorced wife or a widow permission to take her jewellery
and silks away with her.

If a husband wishes to change his place of residence, the
wife must follow, if he requires her to do so. The better
class of Chinese usually leave their legal wives at home
when they wish to travel, and take with them their
concubines.

FAMILY LAW 121

The natural cause of the dissolution of a marriage is
the death of either the husband or the wife, but there are
other causes which are prescribed by law. In addition to
the impediments to marriage, which are causes for divorce,
the husband, if he catches his wife in the act of adultery,
may kill both adulterers; but if the wife is not killed, she
may be sold into concubinage, though the money is for-
feited. If the adulterer should kill the husband, the wife
is strangled.

A divorce may take place: —

1. If both husband and wife are willing to dissolve
marriage, e.g. owing to incompatibility of temper.

2. If the wife leaves the home against the will of the
husband, should she marry whilst absent, she is strangled.

8. If the wife beats the husband, which is probably
very rare in China.

4. If the marriage contract contained false statements.

5. If the wife has one of the seven faults : barrenness,
sensuality, want of filial piety toward the husband's
parents, loquacity, thievishness, jealousy and distrust, or
an incurable disease.

But none of the seven causes mentioned in number five
above will justify a divorce by the husband if any of the
three following reasons against a divorce should exist:
(1) if the wife has mourned three years for her husband's
parents ; (2) if his family has become rich after having
been poor previous to, and at the time of, the marriage ;
and (8) if the wife has no parents living to receive her
back again.

When the marriage is dissolved, the parties are as free
as if they had never been married, and the wife returns
to her family, if they will receive her ; but the children
remain with the father, and the purchase money, if the
husband was not the cause of the divorce, is given back

122 CHINA IN LAW AND COMMEBOB

to him. Should the family of the wife refuse to receive
her, she becomes sui juris.

There can be no relationship through the wife after the
divorce. The laws of nearly every nation provide for the
legality of children bom within a certain period after
the dissolution of marriage; but as to the divorce of a
pregnant wife in China, the law is defective in this respect,
though after the wife leaves the house of her husband not
to return again, the children born afterward cannot be
claimed by him.

The husband generally gives the divorced wife, when
she leaves his house, a bill of divorce. The action for
divorce is not as open to the wife as to the husband — she
can only bring the action if she thinks there will be no
objection on the part of the husband. But if she has been
cruelly beaten by her husband, the law taking no notice of
moderate punishment, or if she has been deceived by false
statements in the marriage contract, or if the husband
has become a leper, or has not been heard from in three
years, the action for divorce may be begun by the wife.

Another custom is, that when a widow marries a
widower she belongs spiritually to her first husband and
is buried with him at her death. The husband can
marry immediately after the death of his wife, but, as else-
where stated, custom is very much opposed to a widow's
marrying again, and, in especial, until she has mourned
three years for her dead husband.

There is a custom, said to be exclusively confined to
the prefectural city of T'ing Chao, in the province of
Fukien, which allows one woman to fill the office of wife
for several men. The cases ^hich have come under
the observation of writers on the subject have been
mostly those where several brothers, by reason of their
poverty, have one woman with whom they live alter-

FAMILY LAW 128

nately. This is calle d polyandr y, and wherever practised,
child murder is also practised.

The reason for the custom of polyandry is not the
opposite of the reason for concubinage. It would appear
that sensuality exercised quite an influence in the former,
but it does not always lead to the latter custom.
The doctrine of filial piety is in a great measure re-
sponsible for concubinage in China. There must be some
one to worship at the ancestral graves ; and if the wife
should prove barren, then the husband may take unto him
a concubine, and the children begotten of her shall be the
children of his legal wife and perform the duties
demanded at the ancestral altar. Abraham took Hagar
as a concubine; but when his wife bore a son, he divorced
Hagar. But Abraham had other concubines besides
Hagar. Jacob had two wives, Leah and Rachel, and,
besides, two concubines, Bilhah and Zilpah, whose sons
were all legitimate. Esau had many wives, and King
Solomon excelled all in the number and splendour of his
family household.

But whether the child be born of the legal wife, or of a
concubine, or be adopted, the power of both parents is
absolute. The father first and, after his death, then the
mother, may do with the child as he or she likes. He may
not only chastise, but even sell, expose, or kill it ; and if
the child is a girl and the parents are poor, it is often
enough the custom to kill it. Such is the theory of
parental power ; but when carried to the extreme there
is a public sentiment in China which condemns it, and
there are official proclamations against infanticide.

The power of the father over his son does not cease as
long as the father lives, unless the son enters the govern-
ment service, and even then, with the permission of the
Emperor, the power may still be exercised. If the child is

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124 CHINA IN LAW AND GOMMBBOB

a daughter, the power ceases to exist when she marries,
for then she passes into the power of her husband.
Should the marriage be dissolved, she returns to the
power of her father, or as a widow she remains with
her husband's family.

It is the first duty of a child to show reverence and
obedience to the parents as long as they live, and to nurse
and support them. If the father, mother, or grandparents
are over eighty years old, or feeble and ill, the son shall
remain at home, unless another son over sixteen years old
lives with them. Filial piety or duty is called the fun-
damental virtue, and any neglect of it on the part of the
children is punished by ofiQcials upon complaint.

A most important institution under this division of
Chinese law is that of adoption. This institution has been
referred to, but a more extended reference is demanded.
It is estimated that in China five per cent of all the
families possesTadopted children, and the reason given by
the ancient Greeks is the same as the reason given by the
Chinese in favour of adoption. ^^The dying out of a family
was to be prevented, as by the desolation of the house the
dead lost their religious honours, the gods of the family
their sacrifices, the hearth its fiame, and the forefathers
their name among the living." Nearly all adoptions, says
MoUendorff, take place in childless families, and among
these the greater part are adoptions of sons. According
to the same authority, a man may adopt a person as son or
daughter, or, if he formerly had sons, as grandchild, but
v^ not as brother, wife, or concubine.

^^ Adoption, like marriage and the acquisition of slaves,
rests in China upon purchase, concerning which a contract
is made in which only the words * wife,' * son,' * daughter,'
or ^ slave ' are differently inserted. The most frequent
case is the adoption of a nephew by a childless uncle.

\

FAMILY LAW 125

This nephew is generally a younger son, who then leaves his
father's family and becomes the grandson of the adopted
father. If there is only one nephew whose duty it is to
continue the line of his father, he has to marry another wife
whose male issue is considered that of the uncle. The
nephew has thus to perform the double sacrifice and is called
^ one son with two ancestral halls.' He mourns three years'
term for his adoptive father and only one year for his par-
ents. If he leaves only one son, the latter has, like his
father, to marry two wives, the issue of one is that of his
grandfather, that of the other continues his uncle's family.
When two sons are obtained, the ancestral hall is completed.
This, then, constitutes the only case where a Chinese may
have two wives at the same time." (Mollendorff.)

There are no special requirements prescribed for one
who adopts another, though it is usual for the adopter to
be older than the person adopted, and foundlings under
three years old may be adopted without ceremony. The
main idea, however, is that only children out of families
who bear ~the^ame family name may be adopted, as other-
wise, according to the Chinese, the difference between fami-
lies would soon cease to exist. After the death of the
husband the widow has the power of adoption possessed by
her husband, but she has to ask the consent of the nearest
male relation of her late husband. She has the right to
prevent the legitimate or adopted sons of her former hus-
band from giving themselves in arrogation against her
wish. The adoption of one's younger brother or one's
uncle, even if the latter is younger than the nephew, is
not allowed; for the same reason the uncle may not adopt'
a nephew who is older or of the same age as himself.

When the father is alive, but insane and poor, so that
by the arrogation the son acquires the means of supporting
him, neither his consent nor that of the nearest relative

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126 CHINA IN LAW AND COMMERCE

need be asked. The same is true if the father is far away,
though on his return he may claim back his son.

There are, however, some requirements which must be
respected by any one who wants to give himself in
arrogation. The consent of the nearest relations of his
former pater familioB must be asked ; and if there be
elder brothers, their consent also is to be requested.

^^A man having sons of his own may not adopt a
stranger as their elder brother, but he may adopt grand-
children as sons of his legitimate or adopted sons. After
his death the latter have the right to dissolve such adop-
tions. Brothers may, after the death of their parents,
give their elder or younger sisters into adoption, but not
without their consent. Even after death a JUivs poBt-
humu9 may be adopted for a man by his relations or
friends; in case he died without any male descendants,
preference is given, in such cases, to a nephew of the
deceased. By special grace the Emperor may do this
for princes of the blood or high dignitaries, but in all
cases with the consent of the male relatives of the
deceased." (MollendoriBF.)

Arrogation and adoption are in effect the same. It would
seem unnatural, but it is true that an adopted son has a
better position in the falffiTy than the natural one^for the
former cannot be sold without the consent of his natural
parents. The only exception to this rule is when a
second adoption would be beneficial. In the matter of
inheritance, the natural and adopted sons take precedence
of the daughters. Should a son be born to the adopter
after the adoption, he may cancel the adoption, provided
the parents of the one adopted are willing to receive him
back; but if no member of his family lives to whom he can
return, he must be kept. The only exception to this rule
applies to ofiQcials who may be left without a family. It

FAMILY LAW 127

may happen that at the death of the parents there are
young children (under seven years) and no one who has
the right to the power of a parent; in such a case the
power devolves upon one of the male relations of the sur-
name if no testamentary tutelage has been ordered. If
there should be no male relation of the surname, then a
male relation of a different surname is chosen. But if no
relation can be found who is willing to take the responsi-
bility, a guardian has to be appointed. However, in China
it would appear almost impossible to be without any such
relation.

A guardian has the power of parents and retains it,
with certain exceptions, as long as he lives. If the child
has property, that remains his ; but the guardian has the
full usufruct of it.

^^ Excepting where the father gives himself in arroga-
tion, so that his children come under the power of his
arrogator, the father's power may cease with his will.

^*' 1. By sale into adoption, by which the son acquires
agnate rights in the family of the adopted father.

*^2. By sale of a daughter into marriage, she becom-
ing an agnate in her husband's family and entering his
manua.

^' 8. By permission to the children to enter a religious
order. They then lose their family name and leave the
family connection altogether.

^^ 4. By exposing the children in tender age. The finder
may lawfully adopt them if under three years of age. If
older, it is not permitted to expose them, and only the
ways mentioned under Nos. 1 and 2 are left to the father
to rid himself of his child." (MoUendorff.)

The penal idea of the Code so governs in every pro-
vision that to fail in the observance of the smallest
detail is a punishable offence. If one should appoint his

128 CHINA IN LAW AND COMMEBOE

heir and representative unlawfully, he is punished with
eighty blows. If the wife is over fifty years of age and has
no son, the husband is allowed to appoint the eldest son by a
concubine to the inheritance ; but if any other than the eld-
est son is appointed, it is a violation of the law. If a person
not having a son himself educates and adopts the son of a
kinsman having other sons, but afterward dismisses such
adopted son, he shall be punished with one hundred blows,
and the son so dismissed shall be sent back and supported
by him. To ask for and to receive into his house as his
adopted son one of a different family name is to be guilty
of confounding family distinctions, and is punishable with
sixty blows, the son so adopted being returned to his
family. And the principle and punishment applies to one
who gives away his son to be adopted into a family of a
different name, the son in the latter case also returning to
his family. On failure of children, the relative appointed
to the succession shall be the eldest in the succession,
otherwise it is a violation of the law followed by punish-
ment. Whoever brings up in his family as a slave the
male or female child of a freeman shall be punished with
one hundred blows, and the child shall regain its freedom.
There is a section in the Code with humane provisions
for the protection of stray children. These little helpless
beings are guarded — at least in theory — against the un-
feeling part of society. They are to be taken when found
to a magistrate, whose duty it is to see that they are prop-
erly cared for. And any one who receives, detains, or
sells such a child for marriage, or adoption, or as a slave,
or fails to present it to a magistrate within a reasonable
time after coming into his possession, shall be punished
with from eighty to one hundred blows, and for the more
serious of the above offences shall be banished for two
years and a half. Whatever disposition has been made of

FAMILY LAW 129

the child contrary to law is annulled, and it regains its
freedom. If an unmarried man gets a child by a girl, he
must marry her. If he has a wife, he must then take her
as a concubine ; but in any event the child is legitimate.
Illegitimate children and the children of prostitutes bear
the family name of the mother and are under her control
and power.

As the Roman doctrine of agnatic and cognatic relation-
ship is recognized by Chinese law, the explanation given
of it in Maine's ^^ Ancient Law " will not be out of place
in this chapter.

^^ Cognatic relationship is simply the conception of kin-
ship familiar to modern ideas ; it is the relationship aris-
ing through common descent from the same pair of married
persons, whether the descent be traced through males or
females. Agpiatic relationship is something very different;
it excludes a number of persons whom we in our day
should certainly consider of kin to ourselves, and it in-
cludes many more whom we should never reckon among
our kindred. It is, in truth, the connection existing be-
tween the members of the family, conceived as it was in
the most ancient times. The limits of this connection are
far from conterminous with those of modem relationship.

^^ Cognates, then, are all those persons who can trace
their blood to a single ancestor and ancestress ; or, if we
take the strict technical meaning of the word in Roman
law, they are all who trace their blood to the legitimate
marriage of a common pair. ^ Cognation ' is, *theref ore, a
relative term, and the degree of connection in blood which
it indicates depends on the particular marriage which is
selected as the commencement of the calculation. If we
begin with the marriage of father and mother, cognation
will only express the relationship of brothers and sisters ;
if we take that of the grandfather and grandmother, thien

180 CHINA IN LAW AND COMMEBCS

uncles, aunts, and their descendants will also be included
in the notion of cognation ; and, following the same pro-
cess, a large number of cognates may be continually
obtained by choosing the starting-point higher and higher
up in the line of ascent. All this is easily understood by
a modem ; but who are the agnates ? In the first place,
they are all the cognates who trace their connection ex-
clusively through males. A table of cognates is, of
course, formed by taking each lineal ancestor in turn and
including all his descendants of both sexes in the tabular
view. If then, in tracing the various branches of such a
genealogical table or tree, we stop whenever we come to
the name of a female and pursue that particular bi*anch or
ramification no further, all who remain after the descend-
ants of women have been excluded are agnates, and their
connection together is agnatic relationship. I dwell a
little on the process which is practically followed in sepa-
rating them from the cognates, because it explains a
memorable legal maxim, ^Mulier eit fini$ famUicB' — a
woman is the terminus of the family. A female name
closes the branch or twig of the genealogy in which it
occurs. None of the descendants of a female are included
in the primitive notion of family relationship.

^' If the system of archaic law at which we are looking
be one which admits adoption, we must add to the ag-
nates thus obtained all persons, male or female, who have
been brought into the family by the artificial extension of
its boundaries. But the descendants of such persons will
only be agnates, if they satisfy the conditions which have
just been described.

**' What, then, is the reason of this arbitrary inclusion
and exclusion ? Why should a conception of kinship, so
elastic as to include strangers brought into the family by
adoption, be nevertheless so narrow as to shut out the de-

FAMILY LAW 181

scendants of a female member ? To solve these questions
we must recur to the p atria potestas. The foundation of
a gnation is not the marriage of father and mother, but the
authority of the father. All persons are agnatically con-
nected together who are under l;Ee same paternal power,
or who have been under it, or who might have been under
it if their lineal ancestor had lived long enough to exercise
his empire. In truth, in the primitive view , relationsh ip
is exactly limited by patria poUuttu. Where the potesias
begins, Hnship begins, andtherelore adoptive relatives are
among the kindred. Where the potestas ends, kinship
ends, so that a son emancipated by his father loses all
rights of agnation. And here we have the reason why
the descendants of females are outside the limits of archaic
kinship. If a woman died unmarried, she could have no
legitimate descendants. If she married, her children fell
under the patria poteitas^ not of her father, but of her
husband, and thus were lost to her own family. It is ob-
vious that the organization of primitive societies would
have been confounded if men had called themselves
relatives of their mother's relatives. The inference would
have been that a person might be subject to two distinct
patricB pote8tate$^ but distinct patricB potestateB implied
distinct jurisdictions, so that anybody amenable to two of
them at the same time would have lived under two differ-
ent dispensations. As long as the famil y waa an impp.rti^ fn ^-^
inimperioy^ community within the commonwealth governed
by its own institutions of which the parent was the source,
the limitaCidn of relationship to the agnates was a neces-
sary security against a conflict of laws in the domestic
forum."

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CHAPTER V

TENXrBB AKD TBAN8FSB OF PROPERTY

There is a note to section eighty-eight of the Code in

which is intimated a doubt whether the tenure by which

land is in general held in China is of the nature of

a freehold, and vested in the landholder without limitation

! J or control, or whether the Emperor is in fact the universal

■ < , and exclusive proprietor of the soil.

it is a fundamental doctrine that the right of a state to
its publiq_property or domain is absolute, and excludes
that of its own subjects as well as that of foreigners. In
China this doctrine is distinctly laid down in its broadest
sense in the classics and in the Book of Odes, and is recog-
nized by Chinese as not to be questioned in theory. A
translation from the Book of Odes asserts the doctrine that
all land in the world is the property of the Emperor, and
that all dwellers thereon are his subjects. But China and
her conservative bureaucracy have been made to experi-
ence more than once within recent years that there are
dwellers on land other than Chinese, and that their Em-
peror^s claim, according to the Book of Odes, is very
much limited in boundary lines. Whatever may be the
"^theory as to the tenure of land in China, it is a well-
-known fact that the possessors of land regard such posses-
sions as the most secure, if not the most important por-
tion, of their property. And land is sold as absolutely,
and the title deeds are as valid, in China as under any
government.

182

TENUBB AND TBANSFBB OF PBOPEBTY

188

But the business man will be interested in another fact
that certain sections of the Code show that the practi-
cal view of the question of tenure is somewhat qualified.
By the seventy-eighth section the proprietor of land seems
to be almost entirely restricted from disposing of it by
will. By the eighty-eighth section it appears that the
inheritors of land share it among them in certain estab-
lished proportions. By the ninetieth section those lands
are forfeited which the proprietors do not register in the
public records of the government, acknowledging them-
selves responsible for the payment of taxes upon them.
Allotments of land even appear in some cases liable to
forfeiture merely because they are not cultivated when
susceptible of confiscation. By section ninety-five no
mortgage is lawful unless the mortgagee actually enters
into a regular contract duly authenticated and assessed
with the legal duty by the proper magistrate, and has the
produce thereof conveyed to him, and makes himself per-
sonally responsible for the payment of taxes until the lands
are redeemed by the proprietor. It will be further per-
ceived that, except in case of a lawful mortgage, no
person, other than the actual proprietor of the land, is
allowed to engage for the payment of taxes upon it, and
that therefore such engagement is in some degree a test of
property.

But while the Chinese concede that their Emperor is
the owner of all China, and that they are the subjects of
his win and power, the land is nevertheless parcelled out
among tiiem, and they enjoy possession as full as any
people so long as the assessments of the government are
regularly paid.

There is, however, a military tenure, which entered into
the land laws of China after the conquest by the Man-
chus, and which I must refer to before explaining the

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- t.-

184 CBIKA IK LAW AND COMMfiRCB

tenure by which land is commonly held. This mili-
tary tenure is similar to that which William the Con-
queror enforced when he portioned a large part of England
among his followers. The Manchu conquerors portioned
certain parts of China among their followers and made
g^nts to them for the land thus confiscated. Such lands
are exempt from taxation, and while the conditions of
military tenure do not so clearly appear as they did in the
terms expressed in the grants of the Norman conqueror,
there was an implied condition that the grantees were to
render military service whenever it should be demanded
of them.

In China those who occupied the land at the time of
the grants or petitions were generally permitted to remain
and pay rent to the new owners, but in some cases they
were driven off to make room for their conquerors. The
change brought with it many hardships. Rents were
raised in proportion to the extravagance of the Manchu
owner, and the greed and the indifference of a conqueror
were substituted for the considerate and liberal policy of
the former native rulers.

At one time the land that had been so portioned among
the Manchus could not be alienated, alienation being pro-
hibited by the principle of military tenure; but the ride has
been relaxed, and much of this land has been purchased
from the conquerors by the conquered, as the Chinese are
more thrifty and provident than the Manchus.

In this connection another tenure, different from the
common tenure, may also be referred to. It is in the
nature of a grant to certain clans or families on the con-
dition of their guarding the frontier of the Empire and
annually furnishing a certain number of boats and men
for transportation service. The land so granted was not
entirely exempt from taxation, but the amount of the

TENUBB AND TBANSFBB OF PBOPBBTY 185

assessment was much smaller, and it could not be alienated
outside of the families affected by the particular service.
The distinction has practically disappeared, and now about
nine-tenths of all the landed property in China is held by
common tenure.

A grant of unoccupied land may be obtained from the
government, and this refers to land which was originally
waste, or which at one time was cultivated but for some
cause has been abandoned. The government is the
owner of all such land, as well as the final reversioner
of all that is arable but has become tenantless from
failure of heirs or by abandonment. If a Chinese wishes
to become the owner of a piece of waste or abandoned
land, the simple process is to enter into possession and
bring it under cultivation. When he has done this he
applies to the district magistrate, who issues a proclama-
tion setting forth the facts, and if the old owner wishes to
retain title or recover what may have been lost, he must
come forward and resume the cultivation of the land. If
this is not done on his part within a reasonable time, the
applicant is granted a title deed which is good against all
the world. A title so acquired gives the owner the
right to deal with the land at pleasure. He may freely
sell, mortgage, or lease it without interference on the part
of the government, and there is no difference in the terms
used to convey land of this character from those used in
conveyances which are in daily use among business men.

The idea of tenure is inseparable from the idea of
property in land, and pervades the law of real property in
almost every country. In the eye of the ancient law a
greater dignity attached to a freehold, and more form and
solemnity were required in the conveyance of land than in
that of chattels. This was because personal property was
of a more transitory nature and entered much more into

186 CHINA IN LAW AND COMMERCE

commerce, and consequently required the utmost facility
in its incessant circulation. Even in the early periods of
history, before conveyances of land were in writing, such
conveyances were accompanied with overt acts equiva-
lent, in point of formality and certainty, to deeds. It
may be said that the universal law now is to reduce to
writing the terras of almost every transaction which re-
lates to land, and that the tenure of highest dignity which
one may hold to land is in the form of a written instru-
ment called a deed.

And China is not behind other commercial nations in
safeguarding the transfer of landed property, nor are her
laws less appreciative of the importance of such transfers.
This will now be inquired into.

The force of custom again makes its appearance when
one examines the tenure by which property is held and
the form used for its transfer. There are hardly any two
provinces in China where the form for a deed is the same.
This is not only true with reference to the provinces, but
there are often localities in the same province where the
form is different. It would seem that such a difference
would give rise to trouble, but in looking closely into
deeds of different forms one must see that the technical
expressions for the conditions of the agreement are sub-
stantially the same everywhere in the Empire. There-
fore it is only necessary to procure the usual form of a
deed used in any important local centre of business, and
modify or change it according to the special usages and
customs of other localities, which ther6 should be no dif-
ficulty in ascertaining.

The first essential consideration is that the subject-
matter of the agreement should be clearly stated. There
should be no ambiguity in setting forth the conditions.
The legal and technical terms which have been brought

TENURE AND TRANSFER OF PROPERTY 187

into use by the custom of the locality where the property
is situated must be employed. It is advisable never to
abbreviate a character used in a deed, but to write it in
full, and when a character has been omitted it may be
interpolated, but the fact must be noted at the foot of the
deed, and the character so interpolated should be written
in full in the note.

It is of the greatest importance that boundaries be
accurately defined and the property as accurately de-
scribed. When there is a right of way over the property
of another, it is indicated by the words '^ going out and
coming in'' by a certain road, to be also described as
well as defined by boundaries. It is the custom for the
owner of the land over which the right of way exists
to sign the deed as a witness. This is required as a
precaution against his extending his holding in the
future by enclosing the common way. Should he refuse
to sign, the vendor ought to assert the right of way accord-
ing to usage and testimony in confirmation, and compel
respect for the custom by the proper legal proceedings.
And if a right of way for an irrigating channel or for
drainage over another's land be required, it should be
expressed in the deed.

If one of the boundary lines of the piece of land de-
scribed in the deed should be in the middle of the street,
that fact is peculiarly indicated by the placing of the
boundary stone, and common usage has made this imper-
ative. The stone is placed at the side of the street, and
the characters inscribed on it mean that the actual boun-
dary is not at the site of the stone, but outside, that is, in
the middle of the way. And the side of the stone over
which the characters have been inscribed ought to look on
the adjoining property.

Sometimes it is inconvenient to erect a stone as the

138 CHINA IK LAW AKD COMMBBCB

boundary mark; when such is the case, a boundary line
may be substituted, by which is meant the ^^ driving of a
longish post into the ground and then drawing it out and
filling the hole with lime." In all eases when a boundary
line is used, the fact should be noted in the deed and in
the property roll ; the latter will be explained later on.
Boundary marks should always be set in the presence
of public officials, whose duty is to give due notice to the
neighbouring proprietors.

It is a frequent custom with families that possess large
properties to prepare two rolls : one contains copies of
all deeds with explanatory notes, and is deposited in
some safe place ; the other contains abstracts only of the
deeds, and is deposited with authentic documents in the
archives of the family.

In all Chinese deeds certain words are used for seller and
buyer, and these mean about the same as in English deeds.
When a third party is selected to draft the deed, he signs
his name at the bottom of the instrument with a char-
acter which shows that he was the drafter of it. By
custom the drafter is selected by the seller, but the buyer
has the right to demand that he shall be an upright and
experienced man. If the seller should draft the deed
himself, then he must also sign at its foot with a character
which signifies that the writing is his own. The rule is
that there shall appear on every deed the character
proper to indicate without mistake the name of the person
who wrote it.

But, as elsewhere stated, it is scarcely possible to con-
ceive of a transaction between two Chinese without the
intervention of a middleman or go-between. This is a
character inseparable from Chinese business methods.
There maybe more than one middleman, and those who are
employed to negotiate directly for the conclusion of the

TENURE AND TBAKSFEB OF PBOPEBTY . 189

contract between the seller and buyer are styled the " origi-
nal middlemen " ; but when, as is often done, others are
invited to sign as witnesses, these last are styled the
'^invited middlemen." The principal witness, however, is
a near relative of the seller's family, his father, uncle, or
nephew, and is styled ^^ one who saw the sale."

The names of the seller and middlemen are written in
full in the deed, and underneath each subscribes his own
private mark. The buyer does not sign, and the middle-
men who sign are not understood as guaranteeing the
title, but rather as guaranteeing that the seller is what he
represents himself to be and that the transaction is in good
faith. The employment of middlemen is not thought to
be strictly necessary to the validity of a sale, but it is
seldom that sound business prudence is satisfied with less
than two as witnesses to the transaction, and there are
often as many as eight or ten.

There is this peculiar clause in a Chinese deed which
is made in deference to, if not demanded by, the law govern-
iflg'tbB'faintly "Ownership of property. It is "that the
seller, being in want of money, and having first offered
the land to his kinsmen, who decline to buy it, has
afranged through the middlemen to sell it to so-and-so
alld: for such a price."

After the insertion of such a clause and after con-
formity to the essential requirements named above, the
transaction is still incomplete without the village ti-pao,
or head-man, whose importance has been referred to in
the chapter on Government.

The seal of the ti-pao must be attached to the deed
before it can be registered in the office of the district
magistrate. If the deed is not registered, and it is the
duty of the buyer to have it registered, the land is by law
subject to confiscation. The fee for registration, inolud-

140 CHINA IN LAW AND COMMERCE

ing the proper and improper charges, is about six per cent
of the amount of the purchase money, but the amount of
the purchase money is not always correctly stated in the
deed. An example is given by George Jamieson of the way
the heav y tax for registration is avoided. The price is
understatecnhus': "If taels 3000 be the real price,
the sale will purport to be made in consideration of taels
1500, or the seller will execute two deeds, in one of
which he purports to convey the ground for, say, taels
1400, and in the other for taels 1600, both in identical
terms. Only one of these goes to the magistrate to be
stamped, the other is retained by the purchaser as a
receipt for his money."

After the deed has been registered by the magistrate it
is returned to the owner with an official endorsement of
the transaction. In this endorsement are set out the names
of the seller and buyer, the district in which the land is
situated, the amount paid as transfer fee, and the amount
of the annual tax for which the new proprietor is liable.
On the deed so returned the magistrate's seal should appear
in several places, under the form of an impression in red,
and from such a red impression the deed is popularly
known as a " red deed," which is the highest form of title
obtainable. The ingenuity, however, which names a false
price to avoid the payment of the customary charges has
been exercised in the direction of substituting unstamped
deeds, but these last are known as '' white deeds " and
are always regarded with great suspicion.

At the open ports of China foreigners have the right,
under the treaties, to purchase land from Chinese, but the
latter, instead of executing a deed in the usual form,
execute to the foreign purchaser a lease in perpetuity,
which is registered through the consulate of the pur-
chaser, and only a nominal fee is charged by the Chinese
authorities.

TENUBB AKD TBAN8FEB OF PBOPEBTY 141

There are many wealthy Chinese who prefer to place
their property under the protection of a foreign flag,
and much of the landed property within the limits of the
treaty ports is really owned by Chinese, though registered
in the name of foreigners. A lease in perpetuity is
executed to a foreigner, who has it registered through his
consulate, and when this is done the foreigner gives to the
real owner a private paper, in which appear the condi-
tions of the lease in perpetuity.

A recent decision of the British Supreme Court at
Shanghai has recognized the system of tenure ruling in
China, and the principle that land also in China has cer-
tain qualifications impressed upon it by the laws of the
Empire. The decision clearly states the principle of the
lex loci rei aitiB and applies it as governing controversies
with reference to landed property in China. This decision
dissents from a former decision of the same court, in which
it was held that a British subject who owned land in
China should have his rights thereto adjudicated accord-
ing to British law. It is the law of western nations that
in all questions respecting immovable property the lez loci
rei 9itcB prevails. And now the British Supreme Court
has adjudged it both right and useful that the same rule
should be acted upon, where British subjects are concerned,
in the administration of justice in China. But the sounder
view appears that after China has surrendered the juris-
diction of her courts in the case of property owned by
foreigners, the laws of the countries of such foreigners
ought to govern.

While the invariable method of transferring land is by
deed poll made by the seller and subscribed by him and the
middlemen, as explained, yet such a deed, although effec-
tive, should not be understood as answering to the full defi-
nition of a deed in English law. In China it is advisable

142 CHINA nr law akd commbbge

for the seller and the middlemen to affix their marks, and
not their seals, as the use of the seal is objectionable as
giving rise to questions of identity.

Another way of transferring property is by mortgage.
In the chapter on Law the meaning and the effect of a mort-
gage were explained, and the reader is referred to that
chapter for the definition of a mortgage and the analysis
of that form of conveyance. It is only necessary to state,
in this connection, that the effect of a mortgage is that
the land changes hands in consideration for a sum of
money paid down, but the original owner is entitled, on
repayment of the money, to get back his land. The mort-
gagor does not pay any interest for the use of the money.
The mortgagee enters into possession, and the rents and
profits accruing from the knd are accepted in place of
interest. The land is exchanged for the money, or, in
other words, the land is lent and not the money. The
money cannot be demanded back, though the land can
be, but the owner must come forward as prescribed by
law to redeem it, and if he does not, the occupant then
becomes the owner. There was once great confusion with
reference to the right of redemption. The time within
which the right could be exercised was very indefinite,
and in order that there should be more certainty a law
was passed in the seventeenth year of Kien-lung which
enacted that the right of redemption must be exercised
within thirty years, unless the time was specially men-
tioned in the mortgage. ^^This form of transfer would
appear to have been the original and, perhaps in early
times, the sole form. The final alienation of land, espe-
cially of old family land, though not absolutely forbidden,
was considered so improbable that the presumption was
always against it. The land indeed was not in theory
deemed to be strictly the personal property of the

TEKUBE AND TBANSFSB OF PBOPEBTY 148

occupant or owner for the time being, but rather the heri-
tage of the family or tribe generally of which the occupant
was a member. Subject to his life interest, they all had a
more or less qualified interest in the reversion, and on his
death it was bound to come to some one or other of them
with further reversionary rights over it. The theory, how-
ever, was not carried so far as to forbid the actual occupant
from dealing with it all. If very hard pressed he might
raise money on his land, but* in doing so he was bound as
far as possible to have regard to the family rights, either
by reserving the right of redemption or by giving his kins-
men the first option of purchase." (George Jamieson.)
But the theory in favour of family rather than individual
ownership has felt the influence of the spirit of modern
commerce and has been much modified in favour of liberal
trade. Even now, however, as has been seen, a deed con-
veying an absolute title to a purchaser contains a provision
that the land was first offered to the kinsmen of the seller,
who had been requested to buy, but had refused.

The distinction should be observed, however, between
such a mortgage as has been above described and a mort-
gage of land as security for money lent to be repaid within
a short time. In the latter instance the mortgagor re-
mains in possession of the land, and the mortgage need not
be registered. It is usual in such cases for the mortgagor
to deposit with the mortgagee the old title deed at the
time the mortgage for the temporary loan is made. But
in the event of failure to repay the loan as stipulated, the
creditor or mortgagee could not sell the land without a
decree of sale by the proper court. And if, after the sale,
the price proved insufficient to liquidate the debt, there is
considerable doubt if the creditor could sue for the bal-
ance, unless the right were expressed in the mortgage. If
there should be other creditors, it is probable that these

144 CHINA IN LAW AND COMMERCE

would share equally with the mortgagee the proceeds of a
sale made in accordance with a decree.

When a contract is made in which the mortgagor sur-
renders the equity of redemption, it is called an irrevocable
sale ; but for the transfer to be legally recognized as irre-
vocable the law prescribes that the phrase ^^ irrevocable
sale'^ shall be employed in the instrument of transfer.
On the other hand, if the right of the equity of redemption
is retained, it is expressed by the employment of the phrase
^' revocable sale." The use of the phrase ^' revocable sale "
further indicates that the seller retains the '^root of
the soil," while the buyer possesses only the ^^ face of the
soil."

In some places when landed property is sold by irrevo-
cable sale, one deed is sufficient, but in some others four
deeds are prepared : a deed of revocable sale, a receipt for
the rest of the value, a deed of subsequent irrevocable sale,
and an acknowledgment of the receipt of alms, or in
other cases the total value is distributed over four deeds
and different dates are given to them. A valid deed or
gift of landed property for benevolent purposes may be
made, but it is better replaced by a deed of irrevocable
sale.

What is known in English law as a will with the unfet-
tered power of bequest or devise is unknown in China. It
is not unusual, however, for a parent to leave written
instructions as to his wishes in the division of his property,
or he may make the division during his life, but the law of
Cliina does not accept the expression of a last wish in such
a form as a testamentary devise of property. T^e^^ule is
that when a man dies, his property, real and personal, is
equally divided among all his male children, whether born
of his legal wife or of a concubine. When there is no
male child, one may be adopted from an agnatic relation,

TENURE AND TRAN8PEE OP PROPERTY 145

though a certain order of kinship for adoption is fixed.
But when there is a failure of the male line and no adoption
has been made, the relations of the deceased sometimes
meet in family council and adopt a son, who then succeeds
to the whole inheritance. The daughters succeed to the
property only when there is a complete failure of male
heirs, either natural or adopted.

Another rule is, the succession vests by operation of law,
and no ratification by the authorities is required, nor is
there any fine or succession duty payable. When there is
more than one son, the property can be divided as the sons
mAj agree among themselves, or they can enjoy it in com-
mon without dividing it at all. If there is a mother or an
unmarried sister to be provided for, the custom is for the
sons to live as tenants in common in order to be better
able to support their mother and sister. But if it be de-
cided that the property shall be divided, the eldest son by
custom may claim an extra share in order to defray the
cost of the family sacrifices, the charge of these devolving
upon him because of his seniority.

The rules of succession in China have been summarized
and stated in the Journal of the China Branch of the
Royal Asiatic Society as follows : —

1. Landed property shall descend in infinitum to the
issue of the last holder.

2. Male issue shall be admitted before the female.

8. When there are two or more of the male issue in equal
degree of consanguinity, they shall inherit all together
and equally. This rule, of course, applies to the land of
the people generally, for with regard to grants made by the
crown to the hereditary nobility, the doctrine of primo-
geniture, or right of the eldest of the males to inherit
both title and property, applies much as in English law.
Indeed, this custom appears to have taken deeper root in

146 CHINA m LAW AKD COMMEBCE

China and England than in any other countries, for on the
Continent of Europe some portion of the inheritance or
some charge upon it is, in many cases at least, secured by
law to the younger sons. With regard to the disposition
of ordinary landed property, the heirs, as already stated,
are always at liberty to divide it as nearly as possible into
equal parts ; and when such division is impracticable, it is
the custom to pay in an amount of money from the person-
ality sufficient to bring up the value of the smaller lots to
that of the larger, and then to draw for the choice of the
portions of the property thus equally divided, in the pres-
ence of a gathering of friends and neighbours. Of course
the doctrine of aeniorea priorea applies in this case also,
and a younger brother would not be permitted to divide
the landed property in case the elder brothers should elect
to hold it intact.

4. All lineal descendants, in infinitum^ of any person
deceased shall represent the last purchaser.

5. On failure of lineal descendants of the purchaser, the
inheritance shall descend to his widow.

6. There being no widow living, the inheritance shall
descend to the collateral relations, these being of the
blood of the purchaser, subject to rules 2, 8, and 4, above
cited.

7. In default of the heirs above mentioned the land
shall revert to the government, and it is the duty of the
head-borough and villagers to report such cases to the
local authorities, on pain of punishment as abettors in an
attempt at concealment.

It would be fairly accurate to estimate that about one-
half of the whole soil of China is tilled by tenants, and
that the other half is owned by retired officials and their
families. But there is no class of hereditary nobles in
China, nor are titles of nobility associated with territorial

TENUBB AND TBANSFEB OF PROPERTY 147

possessions. The land owned by retired officials, a class
known as the literati and gentry, is usually leased to small
farmers, who become tenants from year to year, or at will.
It is the custom in some localities to demand from the
lessee a certain amount of money on deposit, which is gen-
erally about three years' rental, and which is ccdled caution
money. This caution money is returned to the lessee
when the lease is relinquished, unless it should be applied
to the payment of rent due. The amount should by law
be set out in the agreement between the lessor and
lessee, and if there is a verbal agreement only, there ought
to be witnesses as to the amount and the purpose for
which it was deposited.

^^ Leases of land differ greatly in both the mode and the
time of paying rent ; they differ more as regards the pay-
ment of taxes. The amount of rent depends on several
circumstances : —

^^ 1. On the amount of caution money paid, — the greater
the caution money the less the rent, since the caution
money may be placed at interest.

^^ 2. On the fertility of the soil and the excellence of its
position, such as — at no great distance from a stream, so
that irrigation and drainage are easy.

^^ 8. On the scarcity of land to be leased, t.e. the greater
the number of inhabitants, the greater the demand for
land to be cultivated, and therefore the greater its value.

*^ 4. On how much is supplied by the lessee, i.e. whether
or not the lessor supplies to the lessee, dwellings, seed,
manure, and the more expensive agricultural implements,
such as irrigation-wheels.

^^ 5. On the actual size of the mow (one-sixth of an Eng-
lish acre), — for since the measure of surface differs in
different localities, a mow is larger in one place and smaller
in another.

148 CHINA IK LAW AND COMMEBGE

^^ 6. Finally, it not infrequently happens that a space
which is estimated to contain within its boundaries, both
nominally and judicially, for payment of taxes, a total of,
say, ten maw^ in reality contains eleven mow^ or only
nine. The principal cause of this uncertainty is said to
have been the fraud in olden time of the vendors of
these lands." (Peter Hoang.)

The diversity of conditions necessarily gives rise to dif-
ferent kinds of lease, and from the same authority as the
one quoted above, I select a few of the principal ones : —

1. A lease where the rent is payable in rice only husked
but not cleaned; in Soochow and Sung-kiang the aver-
age amount per mow is nine taw; payment is required
at the end of the tenth moon, and is often made in money,
the rice being converted at its market price.

2. The rent is payable in unhusked rice; the average
amount per mow is one hundred and eighty catties (a eattt/
is one and one-third pounds), and is payable in the ninth
moon.

8. The rent is payable in money in advance, i.e. in each
spring before sowing ; the average amount per mow is
about two thousand cash.

4. The rent is payable each year after the autumn har-
vest ; the average amount is a little greater than if paid
in advance.

5. A lease by which the lessor and lessee share the
crop in kind ; if the lessor has received no caution money
from the lessee, or if he has supplied seed and manure, the
lessor commonly takes six-tenths and the lessee four-
tenths; otherwise the shares are equal.

6. A lease by which in each year, while the autumn
crops are maturing, the lessor, by a broker, and the lessee,
examining first the state of the crop, agree in the propor-
tion to be paid after the harvest to the lessor ; for the

TENURE AND TRANSFER OF PROPERTY 149

most part the lessor takes four-tenths, since generally
for this kind of lease the lessor has received a fairly large
amount of caution money.

7. A lease in which the lessee for every thousand
paces, i.e. four mow^ pays in May one shih (about 108.1
litres) of wheat ; in August, one ahih of Indian corn ;
and in November, one ahih of beans ; this form is frequent
in Tsungming.

When the crop of the year is only an average one, it is
the custom for the owner of the land to remit a part of the
rent in proportion to the crop. The rule of remission is
that which governs benevolent institutions that are the
owners of land, in remitting to their lessees. There are
years when the Emperor remits the imperial tribute, and
then the owners should legally yield three-tenths of the
remission to the lessees.

I will repeat again, that in China there is a penalty pro-
vided for the non-performance of every obligation, whether
civil or criminal, and if a lessee does not pay his rent, he
is liable to a penalty of eighty blows, and payment is
enforced. If the subject of a lease is a house instead of
land, the lessor still demands a deposit of caution money
in an amount about equal to three months of a year's rent,
and the same rule applies, — that the larger the amount of
caution money deposited, the less is the amount of the
rent. The lessee signs a lease in which are enumerated
the number of rooms, all articles belonging to the house,
such as windows, doors, and all conditions of the agree-
ment. When the lessee wishes to quit the house, he is
required to give the lessor three months^ notice of such
intention ; and should he be ejected, without fault by the
lessee, it is customary to give the lessee three months'
notice also, and, in addition, for the lessor to remit three
months' rent. If the house occupied by the lessee be

150 CHINA IK LAW AKD COMMERCE

destroyed by a fire which originated in it, then the lessor
is not required to remit to the lessee any part of the
caution money; but if the fire began in a neighbouring
house, the lessor shall remit one-third of such money.
If the house thus destroyed by fire is rebuilt, and if
it is agreed that the lessee may re-lease, there must be a
new agreement entered into, and all the conditions settled
anew as if there never had been any agreement.

Land formed by alluvial deposits is the subject of a
special provision, and such land is divided into two
classes : the old land now re-formed, and land indepen-
dently formed in the middle of a stream. ^^ Re-formed
land is that which, once washed away by the force of the
waters, has reappeared ; land independently formed is an
island which has formed in the middle of a stream or in
the sea. Re-formed land is legally restored to its former
proprietor, whether it is or is not separated from the land
of which it once formed part ; in the case of land separated
from its former hold, washing away from one bank of the
stream, and forming on the other, as the land gradually
washes away from the one bank, land forming on the other
bank may be substituted for it ; or when land has washed
away from the bank of the stream, and then in the same
stream not far from the bank an island is formed, this is
recognized as actually the land washed away. In order
that the old proprietor may make a legal claim to the
re-formed land, he is required to prove that it is in the
same place where he already had possession. The proof
admitted, besides evident signs, if any exist, is the entry
in the public records, in which the proprietor, immedi-
ately after the washing away of his land, took care that
its situation and limits should be inscribed. .Re-formed
land which is reclaimed without sufficient proof, and land
formed on the bank of a stream where formerly there

TENTJBB AND TBAKSFBB OF PROPERTY 151

existed no land, besides islands independently formed in
a stream or the sea, belong to the government, which sells
them through the magistrate to those who first offer the
value fixed by law proportioned to the quality of the soil.
Land situated on the shore of the sea, or a stream, or lake,
should be measured each winter, and taxes are remitted
for any part of it washed away. New land is measured
every five years, and assessed for taxes according to the
fertdity of each lot ; if any land, originally lightly taxed,
in course of time becomes richer, a heavier tax is imposed
on it. When land is re-formed, its former owners, either
because they have migrated far away or because it is diffi-
cult to prove their right, commonly put in no claim to it.
Hence all formed land deposited on the edge of a neigh-
bouring property is commonly occupied by the neighbour-
ing proprietor, and is sold to him by the government at
the time of legal measuring. An island or land inde-
pendently formed in the sea or in a stream is generally
occupied and bought by influential people of the district
and settled by colonization." (Peter Hoang.)

In order to remove all doubt with reference to title
deeds a certain form was prescribed and issued for the
whole Empire in 1783 a.d., and for new land formed by
alluvial deposits after that date the proprietor received
what is known as a treasurer's certificate or a magistrate's
certificate. When these documents are lost, the tax cer-
tificates are taken as proofs of ownership. A person in
possession of a title deed is presumed to be the proprie-
tor of the land described in it, but the presumption may
be rebutted by proof that the possession was illegally
acquired. When land is sold, the seller delivers the title
deed to the buyer along with the deed of sale which he
executes, and notes the fact of delivery at the bottom of
the latter. But if only a small portion of the land is sold,

152 CHINA IN LAW AND COMMEBCB

the seller executes a supplementary title deed and notes
on the original title deed, in the presence of a witness, what
part it is of the land described in the latter, giving the
size, with metes and boundaries, the name of the buyer,
and any other fact essential to the identification of the part
sold, and in especial why the seller retains the original title
deeds. But when the greater part of the land is sold, the
original title deed is then delivered to the buyer, who exe-
cutes a supplementary title deed to the seller and notes on
the original what part of the land covered by it has been
retained, and by whom. When a title deed is once issued,
it is never renewed; if lost, the owner of the lost deed
should at once petition the proper magistrate, whose
duty it is to record the fact in his office archives. If, how-
ever, the owner be a man of position, the magistrate will
usually issue to him a sealed instrument in which the
owner's right is confirmed and which cancels the title
deed if it exist. In a case where the title deed has
been lost and the owner of the land has contracted to
seU it, he executes to the buyer a supplementary title
deed and adds at the foot of it a note, showing when and
how the loss occurred and when the magistrate was in-
formed of the loss; at the same time the seller delivers to
the buyer his tax certificates for the last few years. The
buyer also claims all former documents relating to the
land, the documents delivered being enumerated at
the foot of the new deed ; if, however, the old documents
have been lost, their loss is then noted and this clause
added : If old documents relating to the same land exist,
they are null and void. The supplementary deed which
replaces the title deed is delivered to the buyer on each
change of ownership ; if it is lost, a deed supplementary to
it is made out.

The Chinese regard the Emperor Kien-lung as their

TENURE AND TBANSFBB OF PBOPBBTY 158

Justinian. In the eighteenth year of his reign he issued a
decree, in which it appears that the words ^^ buy and sell "
do not convey an absolute right or title to property as
would the equivalent ^^ buy and sell " given in our diction-
aries, but merely mean the transfer of an interest liable to
redemption. To prevent litigation the decree ordains
that in the future, in order to convey land permanently,
the words ^' absolute sale without power of redemption "
shall be plainly inserted in the deeds, that all lands con-
veyed within the thirty years then past not containing
this definite expression shall be liable to redemption,
while in order to prevent litigation's becoming immortal
while man is mortal, it is laid down that all land conveyed
more than thirty years prior to the date of the decree shall
be held irredeemable.

It has been pointed out in the chapter on Government
that each province in China is practically independent,
with its own peculiar customs and laws, and so it is with
the customs and laws which govern landed property in
China. One must study the custom of the province, and
even the district in which the particular land is located, if
he wishes to inform himself accurately what written in-
strument comes within the definition of a deed, a mort-
gage, a lease, a contract, and what is necessary to make
each effective.

CHAPTER VI

TAXATION

Of all the functions of the government of China, that
exercised in levying and accounting for taxes most clearly
illustrates the difference between the theory and the prac-
tice of its administration. In theory there is no government
that levies taxes with an evener hand than the Chinese,
but in practice there is not another where the tax-collec-
tor indulges in rapacity and dishonesty to a greater extent.
The principles of taxation, approved by the central gov-
ernment, appear just and equitable ; but the injustice is in
the application by the provincial authorities, and unfor-
tunately, so long as these authorities meet the demands
upon their exchequers, there is seldom any very close
investigation of the means employed to honour such
demands.

There is a section in the Code which provides for impar-
tiality in the levying of taxes and personal services. The
principle is that ^^ in all districts, where taxes in money
and in kind, and the extraordinary and miscellaneous per-
sonal services to be required from the people, are esti-
mated and apportioned, due regard shall be had in each
case to the extent of the family in point of numbers and
to its ability to contribute, according to which the mem-
bers thereof shall be rated in the superior, middle, or
inferior class of inhabitants.

^ If the poorer inhabitants are compelled to perform the
services from which those who are rich are excused, or

154

TAXATION 155

any other such unjust partiality is discoverable in the
conduct of the officers of the government, it shall be law-
ful for the injured poor to appear and complain thereof to
the tribunal of the immediate superiors of such officers,
whence they may repeat the appeal to the several superior
tribunals in succession. The officer and his official agents
who shall be convicted of any such breach of this law,
shall, each of them, be punished with one hundred blows,
and the unjust or partial arrangement shall be annulled.
The officers of any tribunal where such an appeal shall
have been refused a hearing shall be punished with
eighty blows, as the law against bribery to commit an
unlawful act may warrant or require."

Twenty centuries ago the government of China an-
nounced that such principles as are set forth in the above
quotation should govern in the matter of taxation, and
there has since been no change in the equity of those
principles. Through all changes in other respects the
government has shown the desire to remain steadfast in
justice to all its subjects in the apportionment of taxes.

While she announces her purpose to cause the pecuniary
burdens of government to bear evenly on all the subjects,
China also requires of the subject the utmost good faith in
registering in the ** public books " the land he may own
which is liable to taxation. *^ Whoever fraudulently evades
the payment of the land tax, by suppressing or omitting the
register of his land in the public books, shall be punish-
able in proportion to the amount of the chargeable land
omitted." (Code.) And ^*if the land is entered in
the register, but falsely represented, as, — unproductive
when productive, lightly chargeable when heavily charge-
able, or if the land is nominally made over in trust to an-
other, in order to exempt the real proprietor from nominal
service," the guilty party shall be severely punished, ^^ but

156 CHINA IN LAW AND COMMERCE

instead of a forfeiture of the lands, the register of them
shall be simply corrected, and the assessment and personal
service of the real proprietor be established agreeably
thereto." (Code.)

The government is not unmindful that the ability of the
subject to pay may be impaired from excessive rain, the
overflowing of waters, excessive drought, unseasonable
frosts, flights of locusts, and the like ; and when such is
the case, it is provided that the customary assessments
shall be proportionally reduced, or remitted altogether.

When the taxpayer sustains damage from any of the
causes mentioned, or from other causes beyond his control,
his representation in connection therewith to the magis-
trate of his district shall receive the prompt and careful
attention of that official. And as if to remove from officers
and clerks officiating in any of the departments of the
government the motive to enrich themselves by means of
their official positions, ^^no such officers shall, during the
exercise of their authority therein, purchase, or hold by
purchase, any lands or tenements within the limits of such
jurisdiction. " (Code. )

In connection not only with the subject of taxation, but
with other subjects about which the central government
undertakes to legislate, in theory perfect fairness would
seem to govern. If only the fundamental provisions of the
law be studied, nothing more would apparently be desirable
to make China a perfectly governed empire, but most of
this beauty and harmony of organic structure is marred
when put into practice. The Board of Revenue at Peking
is charged with the duty of arranging and supervising
financial matters pertaining to the interest of the Empire.
Before the end of each year the board makes up an esti-
mate, which, when approved by the Emperor, is sent to
the viceroys and governors of the provinces in the form

TAXATION 157

o£ an imperial edict. It is the intention of the board to
apportion the taxes among the various treasuries and col-
lectorates of the provinces as equitably as possible, and
there are one or more in each province in which should
be deposited the taxes as soon as collected.

The taxes on land and grain are estimated on the prin-
ciple that seven mow of land, or an acre and one-sixth,
will support a man and his family ; but of course not every
Chinese has as much land, and some have none at all.

China, like other Oriental countries, relies upon the land
tax as the principal source of revenue; but it is strange
that in a country so large in area as China, the revenue
derived from the tax on land is not so large in amount as
it was at the close of the eighteenth century, and exceeds
but by a fraction the revenue derived from the foreign cus-
toms collectorate. If an average be made for the three
years 1892-1894, China receives from the land tax about
taels 25,000,000 annually, but it must not be concluded
that this sum represents all that is collected. It may
be that it does not represent half, for if the provincial
treasuries are prompt in honouring the drafts of the
central government, the actual sum collected is not too
closely inquired about. And it is doubtful if there is
a province in China that could make up a balance sheet
fairly showing the receipts and disbursements for any
single year of its history.

The principle upon which taxes have been levied has
not always been the same. China has been ruled by sev-
eral dynastic houses, and under each there have been
changes made, but the present dynasty has been able to
avoid in part some of the heavy taxation imposed by that
of the Ming.

During the feudal period the principle was adopted of
dividing a square piece of land into nine equal parts, each

158 CHINA IN LAW AND COMMERCE

containing one hundred mow. The central square of
one hundred mow belonged to the government, and eight
families cultivated each their own square, while the
square owned by the government was cultivated by all.

When the land was hilly, not irrigated, or marshy, the
amount of taxes to be paid on such was regulated accord-
ing to its nature and the productive capacity of the soil.
Dr. J. Edkins states that when the Manchus conquered
China there were 15,888,888 acres of land on the land tax
record, but that the conquerors only levied taxes on land
already cultivated. In 1810 there were 17,918,482 acres.
According to the same authority there is less land now
under grain cultivation than in the Ming dynasty in the
sixteenth century, but this is probably due to the fact that
in China there is at present a larger acreage devoted to
the cultivation of cotton, and perhaps of other crops.

Although the Manchu dynasty governs China by the
right of conquest, slight taxation has been one of the
characteristics of its legislation ; but the merit claimed in
that regard is more than offset by the negligence of the
dynasty in not having the highways *of the Empire kept
in a state of proper repair. The splendid canals and roads
and bridges which, under other dynasties, were the per-
fection of engineering skill, are now in decay and ruin.
The Grand Canal, which at one time connected the capital
with the southern section of the Empire, is in many places
so out of repair as to be almost practically useless,
and this is a great inconvenience to internal trade. It
may be stated that there are no roads in China such as
would be recognized as roads in western countries. There
are a few beaten tracks over which merchandise has been
carried for centuries, but apparently the aim of the Manchu
is to make all he can out of China and to do as little as he
can for her advancement.

TAXATION 159

As the rice crop is the basis of taxation, the subject can
be made intelligible by selecting one or two districts and
showing the quantity of rice levied. In the Wu district
the quantity levied is 149-155 piculs. If the public ac-
counts are examined, it appears that whatever other crops
are produced in that district, are classed as so much
rice ad valorem^ and the whole is labelled taxes on land.
Edkins states the taxes at Shanghai to be .29^ of a picul
on each mow of good land, and since a picul of rice is
worth about five Mexican dollars, and the harvest may
be two piculs, the tax on one mow would be about $1.50.
On inferior land, and land outside of the marshes, of
course the tax would not be so much.

A tax levied on cultivated fields is called lianff. The
personal service or capitation tax is called ting. Thus
when the Code provides for impartiality in levying the
land tax and for personal services, the latter is the same
as the capitation tax in English law. When the land tax
and the personal service tax are intended to be included
together, the tax is then called ti-ting.

This is the way extortion is sometimes practised on the
taxpayers by the under officials. Messengers are sent by
a magistrate to the farmers in the district to notify them
that their taxes are due and to hasten payment. On arriv-
ing at a farmer's house a messenger expects a good meal,
and it is to the interest of the farmer to give him a solid
meal with as much wine as he can drink. But when the
farmer presents himself with the note of assessment of
the taxes due, a sum in excess is invariably demanded.
Although the farmer knows this demand to be unjust, he
usually finds that to pay it is to his interest, or some charge
may be brought against him, such as obstructing the col-
lecting of legal taxes, which in all probability would cost
him more than the sum demanded. To correct the abuse

160 CHINA IK LAW AND COMMEBGE

the present Dowager Empress once ordered that the vice-
roys and governors should direct the subprefects and city
magistrates to send a grain tax form with the amount due
filled in. This was meant to reach the farmer beforehand,
and he was to bring it with him on going to the city to
pay, and exchange it for the tax receipt. No additional
sum was to be charged as a messenger tax, and if the
subprefects or magistrates should give unfair advantages
to certain persons, they could be accused before the
governor-general. A way, however, was found to avoid
this edict of the Empress, for instead of writing the
amount of the tax distinctly in the blank form it was filled
in with large grass characters. The consequence was that
overpayments were still made in the provinces by the help-
less farmers, whose experience taught them that it was
advisable to submit to the extortion rather than appeal to
the law to vindicate their rights.

In a revenue memorandum the inspector-general of the
Chinese Imperial Maritime Customs, Sir Robert Hart, has
recently submitted to the central government a statement
indicating what the land tax of China might yield and how
it might be collected. I have seen no statement clearer
than this, nor has the government been more directly in-
formed of its inefficiency in providing the ways and means
for necessary expenses as well as for the defence of the
Empire.

The inspector-general informed China that her weak-
ness was the real origin of the war now waged between
Japan and Russia. In proof of his opinion he reminds
her that the entire revenue, comprising customs duties,
salt gabelle, land tax, etc., amounts to only about taels
80,000,000 annually, and that more than half of this is
mortgaged for the payment of foreign loans, indemnities,
etc., and adds that some change in the method of raising

TAXATION 161

revenue is absolutely necessary. He refers to the sugges-
tions made by various advisers, but conclu4es that the one
which gives real promise of supplying the want is that
which recommends rearrangement of the land tax, and
proceeds to advise how this might be done.

The estimate is that China proper will measure in length
4000 li (three U are equal to an English mile) and
in breadth about the same. This estimate shows that
the eighteen provinces contain 16,000,000 square Zi, and in
each square ti there are about 640 Chinese mow (six maw
are about equal to one English acre). But if the estimate
be made that 500 mow is the equivalent of a square Zi, China
would then contain 8,000,000,000 mow. The inspector-
general concludes that if each mow were to pay as land
tax 200 copper cash, and if 2000 be taken as representing
1 silver tael, every 10 mow would pay 1 tael, and the whole
superficies ought accordingly to yield taels 800,000,000.
If deductions be made for mountains, lakes, and rivers,
and allowances be also made for bad harvests and unpro-
ductive soil, there would still be, at a reasonable average,
at least half of the whole of China capable of pajring land
tax, which would in this case amount to taels 400,000,000.
As no revenue could be more surely relied on than the
land tax, and none would prove as undiminishing in
amount and as uninterrupted in continuity, not only would
there be enough to provide for every national require-
ment, and leave a surplus, but it might be collected with
nothing like the annoyance and inconvenience and actual
damage now suffered by the people. Certainly when the
entire revenue of the Empire amounts to about taels
80,000,000 only, the advice of the inspector-general, and
the reason he gives for it, merit the most careful considera-
tion of the central government, for in India, where the
conditions in regard to population and comparative wealth

162 OHIKA IN LAW AND COMMEBGE

are similar to those of China, the land tax amounts to
taels 100,000,000.

What I wish to present in this chapter is a considera-
tion of some of the main principles which underlie Chinese
taxation. I do not intend to make them confusing by an
array of details, but probably these principles can be made
clearer by naming a few more of the sources of revenue
and by showing how taxes are derived from such sources.
The land and grain taxes have been referred to, and the
other main sources may be named as follows : taxes on
salt, direct or indirect, likin tax, foreign customs, subsidies
from other provinces, taxes on native opium and opium
licenses, native customs, and rents on special tenures.
There are several miscellaneous sources, but those named
above are the principal ones. The amount of taxes derived
from all sources approximates the sum of taels 115,000,000,
but it has been seen that Sir Robert Hart does not rely
upon more than taels 80,000,000 as certain.

The tax which the foreign merchant has heard and
read most about is known as the likin tax; and a statement
how this tax is levied and collected will at least illustrate
one principle. The tax is new in comparison with the land
and salt taxes. It first came into force in 1858, but then
it appears to have been somewhat local, though in 1861
the Taiping rebellion had so exhausted the treasury of
China that it was made general throughout the Empire
and collected wherever the authority of the central govern-
ment extended. It is as legal as any other form of taxa-
tion, and is so recognized in the new treaties into which
China has entered with western nations. If I remember
correctly, there is a provision in most, if not in all, of the
new treaties providing for the abolition or modification of
the likin tax. Surely there is no form of taxation in
China more embarrassing to internal trade or more ob-

TAXATION 163

structive to the sending of foreign importations to the
interior markets, and the reason for this is evident when
it is borne in mind how the Itkin tax is collected.

As soon as the imperial decree is issued authorizing the
levy of likin^ the provincial authorities at once organize
a bureau presided over by one or more officers of high
rank, whose first duty is to map out all the places where
it would be profitable to locate a likin station. When a
station is established, a small official is put in charge who
is responsible to the head office. In all the large towns
and along the main land and water routes one will find
a lUcin station. The number and frequency depend on
how much trade there is, and how much likin tax it will
stand without being strangled. At some places, as along
the lower part of the Grand Canal, the likin stations will be
found to follow one another at intervals of twenty miles or
so. In other places, where trade is scanty and the stations
can be turned by detours, they are not so frequent. To
give to this system of taxation the appearance of unity, in
theory at least, a tariff is arranged and supposed to be
published for general information, but in practice very
little attention is g^ven to the so-called authorized tariff.
The custom is for the merchants and officials to enter into
a bargain as to the sum to be paid in full for the cargo,
or for the merchant, if he is a regular customer, to pay a
lump sum for a particular voyage or a particular trade.

In the chapter on Guilds the influence of those organi-
zations will be shown to enter largely into the internal
trade of China, and in this connection another example
will be pertinent. There is usually a very friendly feel-
ing between the members of a guild and the likin officials.
It is because such an understanding is to their mutual
interest. This may be exemplified as follows : the city of
Soochow is about seventy miles inland from the open port

164 CHIKA IK LAW AND COMMERCE

of Shanghai ; there are several likin stations on the im-
portant trade route between these two cities, and the piece-
goods guild at Shanghai has commuted all likin charges on
piece-goods to Soochow for a number of years. This
fact is mentioned to indicate the irregularity in collecting
taxes and the latitude given to the discretion of provin-
cial officials. The central government and not the pro-
vincial official suffers for such bargains.

As a rule a likin regulation provides for two stations,
one the departure, and the other the inspection station.
The duties are arranged on the basis of a three per cent
levy at each station of the first class, and of a one and a
half per cent levy at each of the second class. That is
about the average duty. The stations are so arranged
that goods, passing along any of the recognized lines of
tariff, come alternately to stations of each kind, beginning
with the departure station. On the majority of routes
there are four stations, two of each kind, but on some
of the routes the last inspection station is omitted. When
there are more than four stations on a route along which
goods pass in any province, the likin charges within that
province do not exceed ten per cent on the assessed
value. All local industries are subject to the likin tax.

The revenue derived from the likin tax is about taels
12,000,000. This is the sum which is accounted for by
those interested in its collection, but the best authorities
on the subject estimate that as much more finds its way
into official pockets. Comment is unnecessary to show
what an embarrassment and hindrance such a system of
taxation must be to trade in general.

Imagine custom-house officials on the border lines of all
the states of the American Union, as well as on the land
and water routes of trade, and the merchant's goods
stopped and appraised for duty at every one of them : no

TAXATION 165

argument is necessary to demonstrate how easily and how
quickly the external and internal trade of the United States
would be strangled to death. Among the late treaties be*
tween China and the western nations, the one negotiated
with the United States of America directly provides for
the abolition of the likin tax, and in that regard is the
best and most definite on the vexatious subject.

Another large item of revenue is the salt tax, and, as a
further illustration of the principle of Chinese taxation,
an example of how this tax is collected will be of interest.

The salt industry is a government monopoly which is
protected by treaty against the importation of any salt
from a foreign country.

The government confines its sale to certain circuits, and
these, for administrative purposes, number seven. The
boundary of a circuit is carefully defined, and to carry
salt from one circuit to another is expressly prohibited.
To be guilty of violating the prohibition would subject
the offender to punishment and the salt to confiscation.

The general system of production and cost is explained
by George Jamieson thus : ^^The salt is produced in cer-
tain specific districts along the coast by evaporation or
boiling from sea-water, or it is obtained from brine found
in wells and marshes in Szechuan and Shansi. There is
no restriction in the quantity or mode of production, but
all the salt produced must be sold either to government
officials, who establish depots for its storage, or else to
licensed salt merchants who have obtained by purchase
the right to acquire certain areas of consumption. The
cost of production varies greatly. At some places,
especially around the coast, where a supply is readily
obtained by evaporation, the cost is very small. In the
province of Fukien, for instance, at Changchow and
Changtzin, which are large centres of production, the

166 CHINA IN LAW AND COMMERCE

cost is said to be 1^ to 2 cash a catty (say 4d. per Iiun-
dredweight). In Chinkiang it costs S to 4 cash a catty,
and at Taku, in the province of Chili, it costs from 1 to 2
cash. In the Huai district the cost appears to be consider-
ably more, especially that portion produced by boiling
water, which is of better quality. Here it is said to
cost from 8 to 10 cash (1«. 7(2. per hundredweight).*'

There is an estimate made by the government of the
quantity of salt that will probably be annually consumed
in each circuit, and warrants are then issued to cover the
whole quantity. These warrants may be used from year
to year, and may then be handed down from father to son,
or they may be transferred for value. A warrant has sold
for as much as taels 12,000.

A warrant entitles the holder to buy at the government
stores a specific quantity of salt. The quantity is not
reckoned by the picul, but by a measure called the t/in^
which varies a good deal in the various circuits. In Huai-
nan the yin represents 8 packages of 86 catties each, with
a certain allowance for waste which actually makes them
weigh 94 catties. Each warrant entitles the holder to
buy 600 yfn. A warrant therefore covers 94 x 8 x 600
catties (8.776 piculs).

There is no source of revenue so closely supervised as
the salt tax. It is the purpose of the government to con-
fine the selling of this product to government officials
exclusively, and it is intended that not a pound shall be
sold unless the purchase money passes the palm of
some government official. But this is not always the case.
The salt smugglers of China are many and keen, and a
bribe prudently placed may often close an official eye.

In Chekiang, on the sea-coast, taxes are sometimes paid
in salt wedges, which vary in size and are weighed by the
tax collector.

TAXATION 167

The revenue derived from the salt tax amounts in
round numbers to taels 18,000,000, which in India is
taels 88,000,000 ; but this sum would no doubt be much
larger if in practice the government monopoly were so
enforced as to accord with the theory upon which the
administration is supposed to be based.

It is from the sources indicated, including among these
native customs, that China derives her principal revenue ;
and the system of collecting and accounting for it has very
justly excited the indignation of the inspector-general.
This is not surprising when the foreign customs col-
lectorate, over which Sir Robert Hart presides, collects
and pays into the treasury of China a larger amount of
revenue than is paid in from any other source. The
theory on which is based the internal taxation of China,
and the number of subjects taxed by the government, in
conjunction with the smallness of the income of the
Empire, would prove a good deal of leakage somewhere.

China is at this writing embarrassed by the want of
a sufficient revenue to meet domestic and foreign obliga-
tions. Her officers are poorly paid, and thus tempted to
rob their own government. The selling of official places
at the capital and in the provinces has long been a custom.
At the port of Shanghai the salary of a taotai does not
exceed taels 8000 ; and yet it is reported that an incum-
bent has paid for the office more than taels 100,000, when
the term of it is three years only

The central government, although it may levy taxes
with an even hand, cannot adopt a surer policy to remove
the dishonesty in the collection of these taxes than to
follow the advice of men like Sir Robert Hart, who has
given a lifetime of loyalty to the real interest of China.

I have consulted the highest authorities on China and
her affairs, and not one undertakes to give accurate inf or-

168 CHINA IK LAW AND COMMERCE

mation as to the amount of the taxes actually collected
from the people. The same uncertainty exists with regard
to the actual expenses of the Chinese government. No
one seems to know what should be accounted for and how
much should be expended. There appears nothing cer-
tain and prompt in connection with taxation in China,
except the date for the taxpayer to pay and the presence
of the tax collector to receive payment.

The enigma grows when one undertakes to explain how
a government like that of China, embracing such an im-
mense area of territory and so large a population, has
survived domestic dissensions and foreign wars, and . is
to-day substantially intact against the searching and
potent influences of western civilization.

The Empire is moving along in the same paths of
polity as when it began its journey more than four thou-
sand years ago. Its gates have been battered down, but
the conqueror has entered only to be absorbed by the con-
quered. China has witnessed the birth, the greatness,
and the downfall of the most powerful republics and
empires that have existed in the past. She furnished
silk for the daughters of Roman senators, but Rome has
long since passed into history, while an edict of the
Dowager Empress is to-dsiy obeyed by four hundred mill-
ions of subjects. The life of China is the longest among
empires, and at the beginning of the present century she
commands more the attention of the world than she did at
any other period of her history, a fact which cannot be
solely due to her colossal physical proportions. There
must be something in her organic structure which has
enabled her to stand firm amidst the crash of surround-
ing empires. True, she has no religion in a western sense,
but she has a code of ethics which is the creed of her peo-
ple, the basis of her laws, and the shrine before which

TAXATION 169

the largest number kneel. The goyemment is both
despotic and democratic. The Emperor does as he pleases,
and his subjects do about as they please. Both are per-
fectly satisfied and wish to be let alone, and are willing
to let all others alone. There is but one China.

The foregoing may be supplemented by a quotation
from E. H. Parker's " China " : —

^* Things would not be so very bad, in spite of parlous
times, if all the receipts were paid, in one currency, into
one central chest or account (as the foreign customs receipts
are), and if all payments were drawn in one currency from
this one chest and remitted in one way. But, in the first
place, all provinces have two main currencies of pure silver
(several ^touches') and copper cash (several qualities), the
relation between which two differs in each town every day.
Besides this, each province has its own * touch' and
* weight ' of a silver ounce ; and some provinces use
dollars, chopped and unchopped, by weight or by piece,
as well as pure silver ; and the doll^ exchange varies daily
locally and centrally in regard to both copper cash and
silver. Even this difficulty, which involves an enormous
waste of time and energy, and opens the door to innumer-
able and inscrutable * squeezes,' might be philosophically
ignored if receipts and disbursements were lumped in one
account, — if the venous blood were allowed a free course
to the heart, and the arterial blood a clean run back to
the extremities. But the Board of Revenue, which is as
corrupt and conservative as the provinces, goes about its
business in a very hand-to-mouth, rough-and-tumble sort
of way. . . • Then each viceroy or governor disputes
every new demand, and it is quite understood that some ap-
propriations are intended to be more serious than others.
Some simpleton of an honest man from time to time throws
every thing out of gear by allowing a truth to escape: the

170 CHINA IK LAW AND COMMXBCE

board never lets a ^flat' of this sort score in fact, even
though he appear to do so in principle. A governor cannot

' be expected to show zeal for Yunnan copper when he knows
that the high officer in special charge is making a fortune
out of it. . • • There are many other absurd results of this
rule-of-thumb system. Province A receives subsidies from
province B, but, itself owing others to province C, pays B
on behalf of C. Thus there are two freights to pay, and
two losses on exchange. Sometimes A may be directed
even to pay a subsidy to a province B, which already pays
one to province A. Funds which might easily be sent by
draft are usually despatched in hoUowed-out logs of wood,
with a guard of soldiers as escort, accompanied by carts,
fighting * bullies,* and a commissioned officer. Even
when sent by draft, there is a charge of two or three per
cent for remitting, and a commissioned officer is sent to
carry the draft. ... It is pathetic to read the account of
hundreds of coolies trotting all the way to Shanghai from
Shansi with heavy logs of wood containing silver where-
with to repay the interest on European loans. The extraor-
dinary care and punctuality exacted in matters of form,
duty, or national honour are only equalled by the shameless
peculation and callous waste of time and money which
prevail in personal matters connected with the perform-
ance of the same public duty. Officers of high rank,
who are known to make 30,000 or 40,000 taels a year

' out of their posts, gravely work out their balances to
the thousand-millionth part of an ounce, forgetting that
(even if the clerk's salary were only sixpence a day) the
time occupied in counting and subtracting each line of
figures would cover, ten thousand times over, the clerk's
salary rate per minute. In a word, the whole Chinese
financial system is rotten to the core, childish and in-
competent, and should be swept away root and branch.

TAXATIOK 171

Until there is a fixed currency, a European accountancy
in all departments, and a system of definite sufficient
salaries, all reform is hopeless to look for."

It has been seen that the system of taxation which
China now enforces is about the same which has been in
force during centuries of the Empire's life, and that she
still refuses to change it. Japan at one time received a
new and better civilization from China than that which
existed in the Island Empire ; but Japan has responded to
the duties and responsibilities of the age by throwing off the
influence of China and utilizing such western manners and
customs as suit her condition ; and no nation has ever shown
the discriminating tact and judgment of the Japanese in
adopting what was most needed to elevate and strengthen.

In early times the system of taxation adopted in Japan
was similar to the system still adhered to by China ; but
the latter Empire will not, like the former, recognize that
national existence demands a change. As a matter of
historical interest and as an indication of the power of
the Japanese long ago to bear fiscal burdens, I offer the
following from Captain F. Brinkley's history of Japan
and China, a recent book in which the author shows a
strong and clear grasp of his subjects and presents them
in the most pleasing style : ^^ The system of taxation
adopted in Japan in early times and the changes it under-
went from age to age are interesting, not merely from a
historical point of view, but also and chiefly as furnishing
an index of the people's capacity to bear fiscal burdens.
It is a somewhat obscure subject, though not so difficult
to understand as the confusing attempts hitherto made
to elucidate it would imply.

^^ Land measure seems to have been based at the outset
on a very practical consideration. The area required to
grow sufficient rice for an adult male's daily consumption

172 CHINA IK LAW AND COMMSRCB

— in other words, a man's ration — was taken as the unit.
A square whose side measured two paces, or six feet, being
considered the area adequate for that purpose, received
the name of Ao, afterward changed to tsubo. This unit
of superficial measure remains unchanged until the present
day. There being three hundred and sixty days in the
year according to the old calendar — twelve months of
thirty days each — a space measuring three hundred and
sixty ttubo^ and producing a year's rations, naturally sug-
gested itself as another fundamental area, the term tan
being applied to it. For the rest, the decimal system
was adopted : one-tenth of a tan being called «e, and ten
tan a cho.

^^Thus far as to superficial measurement. The next
question is the grain grown on a given area. The basis
in this case was the quantity of rice (on the stalk) that
could be grasped in one hand. This was called nigirL
Three handfuls made a bundle (Aa), twelve bundles a
sheaf (jiohu)^ and fifty sheaves were regarded as the prod-
uce of the tan. In the earliest references to taxation
the *' sheaf ' is invariably mentioned. The unit of capac-
ity was a wooden box (called fna«u), capable of holding
exactly one-tenth of the grain obtained from a sheaf, that
is to say, the hulled grain. Naturally a more definite
system ultimately replaced these empirical methods. At
the close of the sixteenth century, under the administra-
tion of the Taiko, the measure of capacity was exactly
fixed, and its volume was called to^ ten to (i.e. a sheaf of
grain) being called a koku (8.18 bushels), while one-tenth
of a to received the name of sho^ and one-tenth of a sho
that of go. There were wooden measures having the
capacity of a sho and a ^o as well as that of a to.

^^ The oldest historical record of land taxation shows that
the tax levied on each tan of land, in the seventh century,

TAXATION 178

was a sheaf and a half of hulled rice ; and since the average
produce of the tan was twenty-five sheaves, this repre-
sented only six per cent of the yield. Thenceforth the
tendency was steadily in the direction of increase. In the
middle of the ninth century land was divided into four
grades for fiscal purposes : the levy on the first grade being
five sheaves per tan (hulled grain must always be under-
stood); thaton the second, four sheaves; that on the third,
three sheaves ; and that on the fourth, one and a half
sheaves. This was called a tax of one-fifth, or twenty per
cent, the produce of the best land being then estimated at
twenty-five sheaves. In fact, the tax was nearly three
and a half times greater in the reign of the Emperor Saga
(810-823) than it had been in that of the Emperor Kotoku
(645-654). In the twelfth century the tax had become
twenty-five per cent, and there was a further levy of ten per
cent of the remaining grain, one-third of this extra impost
being destined for the support of the governors in the
provinces. Hence, at that time, the total grain tax on the
land was thirty-two and a half per cent of the gross produce,
— the central government taking thirty per cent, and the
local government two and a half per cent.

*^It is not to be inferred that grain crops alone were
taxed, other produce escaping. In addition to the levy of
grain, people had to pay chobutsu (prepared articles), as
silk fabrics, pongee, and cotton cloth. These were assessed
at the rate of one piece of silk fabric, three pieces of pongee,
and four pieces of cotton per eho of land (the piece in
every case being ten feet long and two and a half feet
wide). Each of these imposts represented a monetary
value of from thirty to forty momme. There was also a
house tax (kobetsu)^ which took the form of a twelve-foot
piece of cotton cloth per house, or six pieces of ten feet
per cho of land, and, finally, the farmer had to pay ^ sub-

174 CHIKA IK LAW AND COMMERCE

ordinate produce ' (Juku-sanbutsu) to the value of thirty
momme per cho. All these imposts ^ of prepared articles '
aggregated about one hundred and eighty momme^ or three
rt/o per cho; and since the price of hulled rice was two
and a half koku per ryo, and the grain tax was six and
a half koku per cho^ it would seem that the total imposts
levied on each eho of land were fourteen koku. The aver-
age produce of rice per eho was reckoned in those days
at twenty kokiL^ and thus it appears that seventy per cent
of the produce was taken by the tax collector. The people
were further required to provide weapons of war, and had
to perform forced labour. The saying current in that era
— from the close of the tenth century to the middle of the
twelfth — was that the government took seven-tenths of
the produce of the land and left to the people only three-
tenths.

*^It has to be remembered in this context that, in addition
to the taxes enumerated above, every male between the
ages of twenty-one and sixty-six was liable for thirty days*
forced labour annually, and every minor for fifteen days',
which corvSe could be commuted by paying three pieces of
cotton cloth, equivalent in value to about a koku of rice."

From what has been written in this chapter the conclu-
sion is quite clear that there is in China a wide difference
between the theory and the practice of taxation. In theory
the government is influenced by the principles of equity,
but in practice those principles are set at defiance by the
provincial officials. Such a system has prevailed for
centuries, and will continue to prevail until the present
generation of Chinese passes away. There may be hope
in the younger generation, and especially in the young
men now being educated abroad or in the schools con-
ducted in China under foreign supervision. In Japan the
spirit of the age does not appear to confine itself to any

TAXATION 176

particular class of the population, but rather to per-
meate all classes ; and it is due to this fact that Japan
has deservedly won for herself a place in the international
council of nations. The dense conservatism of the rulers
of China invited foreign aggression, and there will be no
new life for the Empire until it is thrown off.

There must be a reformation of the financial system of
China, and such reformation is as much needed at Peking
as it is in the provinces. The central government must
have the laws executed as well in practice as in spirit
and meaning. It is no excuse to say that the laws are
good when the answer can be returned that they are
corruptly executed.

CHAPTER Vn

OOUBTS

Whsn the oourts of western nations began to base their
.judgments on cases recorded, the law which they admin-
istered became written law. It was written case law, and
differed only from code law because it was written in a
different style.

In China the law makes it a penal offence for a magis-
trate or a judge to disregard recorded cases. It is the
duty of such officers to examine carefully the cases that
have been previously decided, and to render judgment
accordingly in the cases under their investigation.

If there be no recorded cases or statutes applicable, then
those which approach most nearly to the cases under in-
vestigation shall guide in determining the judgment to be
rendered.

In the judiciary of no country does the judgment of a
competent court, rendered after due consideration of all
the facts and circumstances, establish a precedent of
greater binding force in determining the investigation of
subsequent cases than in the judiciary of China.

What has once been regularly done is the tyrant with
absolute power to command what shall thereafter be
done. China needs a few original jurists like Mansfield
or Marshall, to mark out new ways ; but in the present state
of Chinese society such pioneers would very probably get
their heads cut off.

176

C0UBT8 177

Another principle of Chinese jurisprudence is that no
person may take the law into his own hands. This prin-
ciple, however, does not deny the right of self-defence, but
the circumstances under which the right may be exercised
must make plain its necessity.

To prevent commission of a crime, Chinese law provides
a broader remedy even than English law. Usually in
English law, on suspicion that a person is about to com-
mit an offence, an affidavit setting forth the facts is made
before a competent judicial officer, whereupon a warrant
is issued for his arrest. After being arraigned, if the sus-
picions are proved, the accused may be required to enter
into a bond for his good behaviour. There is named in the
bond a. penal sum in money, and the bond should be signed
by the suspected person and sureties satisfactory to the
court. But in China, whenever a magistrate may think
it desirable, he can require suspicious characters to give
security in the form of a bond, though no penal sum in
money is named in it. After the bond with sureties is
given, the magistrate has the further power to compel the
family and relatives and neighbours of the person sus-
pected to become responsible ; and it is the duty of these,
if there be occasion, to deliver their principal to the court,
or else they become accessories to the offence conSmitted
and may be punished as accessories. If there should be no
bond, the same duty to give information, under a like
penalty, attaches to the relatives, the family, the neigh-
bours, and the head-man of the village or town. Here,
again, appears the doctrine of mutual responsibility which
spreads through every branch of the jurisprudence of
China.

There is a regular gradation of courts in China, and a
suitor may begin in the lowest and proceed to the highest.
There is the district, the department, the circuit, and the

178 CHINA IN LAW AND COHMEBCE

province. In each of these territorial divisions of the ad-
ministrative system there is a court whose jurisdiction
and powers are defined. From the supreme provincial
court a case may proceed to the judiciary board at Peking
for revision, and thence to the Emperor.

If a subject or soldier of the Empire has a complaint to
make, or information to lay, he must make it before the
lowest tribunal of justice within the district to which he
belongs, from which the cognizance of the subject may be
transferred to the superior tribunals in regular gradation.
If, instead of addressing himself to the proper mag^trate
within his district, the complaint or information is ad-
dressed to a superior tribunal, the punishment is fifty
blows, even though the complaint should be just and the in-
formation correct. But if the inferior tribunal refuses to
receive the complaint or information, it is then kwful to
appeal to a superior tribunal.

And ** in general, every magistrate and tribunal shall,
conformably to the extent of their powers and jurisdiction,
not only receive and undertake to investigate, but also
bring to a final issue and adjudication each of the several
criminal causes and questions on official business that law-
fully come before them ; and whenever they, on the con-
trary, depute or instruct other magistrates to continue
any such investigations in their place or stead, the magis-
trates and members of tribunals so offending shall be liable
to punishment." (Code.) To prefer an anonymous com-
plaint, one which does not contain the genuine name and
address of the complainant, renders the offender liable to
punishment by strangulation, and the punishment may be
inflicted whether the allegations in the complaint are true
or false.

When the complaint has been addressed to the proper
judicial officer, and the court is sitting to hear it, there

COURTS 179

are three considerations which first present themselves.
The first is, What are the facts ? To ascertain the facts is
necessary in order to determine the nature of the offence or
fix the character of the action. Then the court will inquire
into all the circumstances, and these, in connection with
the facts, will guide to any recorded case or statute
applicable, and will serve to bring the case before the
court under a former decision or a provision of a statute.
After the facts and circumstances have been accurately
ascertained, the court further considers the relative posi-
tion of the parties to the suit. This last consideration is
necessary in order that a suitable sentence may be imposed
or a proper judgment rendered.

It is not to be supposed that the proceedings of a
Chinese court are behind closed doors. Any one who
feels so inclined is, it appears, fully privileged to attend.
The trial and the punishment are as open as in any
country in the world, and it could not probably be
otherwise without danger of a revolution. Nor has a
Chinese judicial ofiicer the right to give undue latitude to
examinations before him. The accused can demand that
the questions propounded to the witnesses shall be strictly
confined to the subject of the complaint or information
against him, and any inquiry into matters irrelevant
thereto renders the presiding officer liable to punishment.
But a case is not decided by the weight of evidence. It
is closely scrutinized, and the judge decides according
to his conviction. Statements are not simply accepted,
although direct. The surrounding circumstances must be

torture is provided for in the Code, and may be em-
plo]red~-agsiust accused persons and witnesses when they
prove unduly obstinate. But the employment of torture
in any way by an underling is severely punished. The

180 CHINA IN LAW AND COMMEBCB

tribunal that orders the application must be regular in its
constitution, and the accused or witnesses should be prop-
erly before it. Those who have attained their seventieth
year, and those who have not exceeded their fifteenth year,
are exempt from being ^^put to the question/' There is
also an exception in favour of those who belong to the
eight privileged classes.

According to the Code, a prisoner is given the opportu-
nity to plead after trial and conviction. The proceeding
is, that the prisoner and his family and nearest relations
are brought into court and informed of the offence
whereof he stands convicted, and of the sentence to be
pronounced upon him in consequence. If they acknow-
ledge its justice, or protest against its injustice, the
acknowledgment or protest is written down. In every
case of a protest it shall be made the ground of another
and more particular investigation by the court, and the
refusal to receive the protest and to investigate the case
anew subjects the delinquent officer to punishment.

It has been stated that cases under investigation must
be determined according to existing laws ; but it is im-
practicable to provide for every possible contingency, and
when there are no laws or statutes precisely applicable,
the case may then be determined by an accurate com-
parison with others which are already provided for and
which approach most nearly to that under investigation.
But a sentence which has been passed in accordance with
laws which approach most nearly, but do not exactly fit,
shall be laid before a superior judicial officer for approval,
and so on to the Emperor for final decision. Any errone-
ous judgment which may be pronounced, in consequence
of adopting a more summary mode of proceeding in cases
of a doubtful nature, shall be punished as a wilful devia-
tion from justice.

COUBTS 181

If a law is to become fundamental, it usually takes
effect and is in full force from the day on which it is
published; and every transaction shall be adjudged ac-
cording to the most recent law, although the transaction
should have occurred previous to the promulgation of that
law. An occasional statute, however, which is a modifica-
tion of the law, does not operate in cases which were ante-
cedent to its enactment. If any period of days or years is
assigned for the commencement of the operation of a
statute, the period shall be strictly observed, except when
the statute provides for the mitigation of ordinary punish-
ments, and then it shall be construed to be immediately in
force. There is no excuse for the wrongful application of a
law. All officers and others in the employ of the govern-
ment are enjoined to make themselves perfect in the knowl-
edge of the laws, so as to be able to explain their meaning
and intent, and to superintend and insure their execution.
And fraudulently to pervert or misconstrue, or presumptu-
ously change, abrogate, or confound the law upon any
case so as to produce disturbance or insurrection in the
country, renders the offender liable to punishment by
being beheaded.

As above indicated, a sentence must be in accordance
with the latest law applicable and shall be pronounced in
open court, and the privilege of appeal shall not be denied.
The sentence must be correctly recorded in regular order.
It shall also be executed within the prescribed time and in
accordance with its character or nature.

During the time a prisoner is confined the Code pro-
vides that he ^^ shall not suffer unusual hardships, but
that his necessary wants shall be looked after. When ill,
he shall be provided with suitable medicine and such
physical relief as his condition requires.''

The above provision of the Code would seem to rob

182 CHINA IK LAW AND COMMSBCE

prison life in China of much of its reputed hardship ; but
in practice there is no dungeon darker or more loathsome
than a Chinese, neither is there on^ whose door opens more
readily when the inmate or his friends have money.

It is recorded in the Wu Tai history, 927 A.D., that
Si-tung petitioned to the Emperor, in behalf of piisoners
who were in confinement, that he would order a judge to
be sent to inquire into the cause of such confinement
by carefully examining the charges and evidence against
them in order that justice might be done. The Emperor
issued an edict according to the prayer of the petitioner.
In principle this edict would seem to have been intended
to answer the ends of a habeas corpus under English law,
with this difference, that under the edict the judge goes
to the prisoner and investigates the cause of his detention,
while under English law the prisoner sues out a writ
of haheaa corpus and is brought before the judge, who
decides upon the evidence adduced whether or not he
should be released. The above edict was called to my
attention by Dr. J. Edkins, whose writings on China have
long since established his reputation as a thorough scholar
and a reliable authority.

The right of petition is guaranteed to every subject of
China. The Code is explicit that when a subject desires
to petition to the Emperor he shall have the privilege, and
for an official of the Empire to attempt to deny or prevent
it is a penal offence severely punishable.

The judiciary board at Peking is not a perfunctory
tribunal. Its duties are most important, and when per-
formed as the spirit of the law intends that they should
be, a feeling of security and confidence goes out from the
capital to the provinces. The definite duties and wide
powers of this board stand immediately interposed between
the high provincial officials and the Emperor. The exer-

GQUBT8 188

#

cise by a governor or viceroy of the judicial functions is
reviewed by the board, and is reported upon to the
Emperor as approved or disapproved, as the board may
think proper.

^^ Whenever the tribunals of justice in the provinces or
in the capital have occasion to take cognizance of a case
of false judgment, an accurate and faithful report of the
circumstances thereof, and of the extent of the injustice
alleged, shall be laid before the Emperor." (Code.)

The following is an extract from a collection of Chinese
law reports dealing with the trial, revisal of proceedings,
and final sentence upon a case of a master charged with
the murder of his servant.

The case, according to the statement of the sub-viceroy
of Kiangsi, was as follows : —

^^ Lieu-hoey-kuey hired the services of Pan-ldun-ting, a
slave of government, for a period of ten years. It hap-
pened that on the ninth of the first moon of the forty-fifth
year of Kien-lung, Lieu-she, a married sister of Lieu-hoey-
kuey, came home to visit her father, Lieu-kuen-fung, and
her mother, Chang-she ; and one day, it being cold weather,
her father sent her into the chamber of the servant, Pan-
kiun-ting, to fetch fire-wood. Pan-kiun-ting, being at
the time intoxicated, laid hold of her clothes, and en-
deavoured to prevail on her to lie with him. Lieu-she
resisted, but finding herself unable to escape him, cried
out, and was heard by her mother, Chang-she, who imme-
diately came to her assistance, upon which the slave,
Pan-kiun-ting, relinquished his hold, and was struck twice
by the mother, Chang-she. Pan-kiun-ting, fearing pun-
ishment, soon after ran away from the house, and took
away with him some bread and 120 he (about ninepence)
in money.

^* Lieu-she, having complained to her brother of the

184 CHINA IK LAW AKD GOMMEBCB

attempt of the slaye, and having likewise solicited him to
lay an information before a magistrate in order to have
the offender punished, returned the next day to her own
home and imparted the circumstance to her husband,
Puon-kiun-ye. As it was a disgraceful affair, he merely
endeavoured to console her, and took no further notice
of the circumstance until the fourteenth of the second
moon, when the absconded slave, Pan-kiun-ting, being un-
able to gain a livelihood elsewhere, returned to his master,
Lieu*hoey-kuey, acknowledging himself guilty. Lieu-
hoey-kuey did not, however, take any steps in consequence
until the next day, when his father, Lieu-kuen-f ung, or-
dered him to bind the offending slave, and carry him to a
magistrate that he might be punished. Lieu-hoey-kuey,
fearing that one or two persons might not be sufficient to
accomplish the object, sent his servant, Lieu-tsing-ta, the
same evening to his sister's husband, Puon-kiun-ye, beg-
ging him to come immediately and give his counsel and
assistance.

^* Puon-kiun-ye having arrived, and the slave, Pan-kiun-
ting, being again intoxicated and asleep, Lieu-hoey-kuey
took a bamboo cord, and, accompanied by his brother-in-
law, Puon-kiun-ye, and his servant, Lieu-tsing-ta, went into
the chamber of Pan-kiun-ting before the lamp was extin-
guished. When he began to tie the cord in a knot about
the neck of Pan-kiun-ting, the latter awoke, and, discover-
ing their intention, endeavoured to rise from the bed.
Upon this, Lieu-hoey-kuey desired Lieu-tsing-ta to hold
him down by the head and Puon-kiun-ye by the feet, while
he proceeded himself to tie his hands. At this time Pan-
kiun-ting, whose body was uncovered (he having previously
taken off his clothes), turned about and kicked with his
legs, abusing them all, in the following terms : ^ If you
carry me to the magistrate, I shall only be beaten or

OOXTBTS 185

pilloried and then sent home, after which I will surely
take your lives in revenge/ Lieu-hoey-kuey, being
enraged at this language, took up a small knife used for
cutting tobacco, which happened to lie at the head of the
bed, and wounded Pan-kiun-ting with it in the lower part
of the belly, so that he died very soon afterwards.

^^ The parties present then became fearful of the conse-
quences of the murder, and covered up the body with
the bedclothes. After the first watch of the night,
Lieu-hoey-kuey desired Puon-kiun-ye and Lieu-tsing-ta to
take away the corpse and throw it into the water, which
they did accordingly ; but soon after Pan-kiung-tching,
and others related to the deceased, found the body and
lodged a complaint with the magistrate of the district.
Lieu-hoey-kuey, being in consequence brought to trial
and examined, confessed that the foregoing statement of
the circumstances was correct.

^^ The facts being thus substantiated, the sub- viceroy
pronounced the offence to be the wilful murder of a hired
slave, and to be equivalent to the wilful murder of a
serving-man, which, according to the penal Code, is pun-
ishable with death by strangulation, at the next general
execution and gaol delivery.

^* The supreme criminal court remarks thereupon that,
according to the penal Code, if a master strikes his servant
so that he dies in consequence of the blows received, he
shall be punished with one hundred blows and three
years' banishment ; again, if a master designedly kills
his serving-man, he shall be strangled ; lastly, if any
man unauthorizedly kills an offender after he has seized
him, the punishment shall be conformable to the law in
the case of killing in an affray. Now, because unau-
thorizedly killing manifestly comprehends both designed
and malicious killing, designedly killing an apprehended

186 GHIKA IN LAW AND COMMERCE

offender will be punishable in the same manner as the
offence of killing an innocent person in an affray, that is
to say, killing without a positive design to kill ; this
precisely applies to the case in question, except that the
deceased was not the equal, but the servant, of the person
who killed him ; the punishment, therefore, ought to be
conformable to the law against a master killing his ser-
vant in an affray, which is one hundred blows and three
years' banishment, or, practically, forty blows inflicted at
the place of banishment.

"The sub- viceroy altered the sentence of Lieu-hoey-
kuey conformably to the suggestion of the supreme court,
and added, that as Puon-kiun-ye and Lieu-tsing-ta threw
the corpse away, they ought to be punished only one
degree less severely, as accessories, that is to say, with
ninety blows, and banishment for two years and a half.

"The supreme court again remarked, that there is a
specific regulation applicable to those less serious cases of
homicide, for which no man is made legally answerable
with his life, which regulation declares, that whoever
throws away the corpse in such cases, shall only be
punished as in any case of secretly interring a corpse of
an individual whose decease has been concealed, which
punishment amounts to eighty blows. Now, in the
present case, the offence of killing the slave not being
determined to be capital, that of throwing away the
corpse cannot be punished with more than eighty blows as
aforesaid ; and as Lieu-hoey-kuey directed the corpse to
be thrown away, those who executed the same were only
accessories to the offence and, accordingly, subject to the
punishment reduced one degree; Puon-kiun-ye and Lieu-
tsing-ta ought therefore to be sentenced each to receive
seventy blows, or, practically, twenty-five blows.

" The supreme court lastly notices the edict of the thirty-

COURTS 187

eighth year of Kien-lung, by which it is ordered that all
magistrates of cities of the first, second, and third order,
who concur in pronouncing a sentence of death, which is
afterward set aside as erroneous, and is exchanged for
banishment, are subjected to a diminution of one degree
of rank, and removal to an inferior o£Gice. It is thereupon
suggested that the several magistrates who concurred in
the erroneous sentence adopted and reported by the sub-
viceroy should be degraded accordingly.

** On the twenty-fifth day of the fifth moon of the forty-
sixth year of Kien-lung the above proceedings were laid
before the Emperor, and on the twenty-ninth they
received the ratification of his Imperial Majesty."

I have quoted in full the above revision of the sentence
of a lower court, because it will be interesting to know
that a superior judicial tribunal in China is careful in its
revision, and that this is done with directness and legal
acumen.

The administration of the law by Chinese courts appears
simple and practical. Suits aire commenced by a petition,
in which the case is stated, and there are certain days in
every month for receiving petitions, but probably this is a
rule with exceptions, though it shows regard for system.
There being no professional lawyers in China, the petitions
and other papers that may be necessary in the suit are
prepared by a certain class who make it their business to
prepare legal documents, and, while fiUing an important
vocation, are looked upon with disfavour by the o£Gicials.
The petition and other documents must bear the seal of
the ti'paoy who is an o£Gicial of the lowest rank, but an
important one, as in his person the official class seems to
come in real contact with the people, for he is the small
nerve from the government which loses itself among the
people.

188 CHINA IK LAW AND GOMMEBGB

The seal of the ti-pao authenticates the party and officers
testifying to his residence. When the petition has been
properly stamped with the seal of the ti-pao^ it passes
through several hands and is copied before it is presented
to the magistrate ; but there are certain cases in which the
petitioner is permitted to appeal directly to the magis-
trate by going to his office, or by handing him the petition
as he passes through the street, a privilege, however, that
is only indulged when the case is of a serious criminal
nature, for in common matters it would be a breach of
law thus to approach or accost the magistrate. If the
petitioner's interest will be better served by presenting
the petition on a day other than the regular days, the pay-
ment of an extra charge will help along the progress of
the document. If the petitioner is a woman, or a member
of the gentry, the representation is by proxy, usually by a
servant of the family, and sometimes by a paid agent; but
if the case is lost, the petitioner must appear in person.
After the petition is examined by the magistrate, it is sent
to a certain board of the magistracy, and the defendant is
summoned to appear. The petition is generally answered
as soon as the defendant has notice of it, and the
answer takes the same course as the petition. It is not al-
ways customary for the defendant to appear. He is sum-
moned to appear, and the police are ordered to arrest him
and bring him into court; but if he pays a sum satisfactory
to the police, as is sometimes done, they report that he is
not to be found. This custom is successful to a certain
degree and is occasionally winked at as a perquisite of the
office of a Chinese policeman.

In criminal cases, the criminal may be arrested and
delivered to the magistrate by one of the gentry, with the
proofs of guilt or reasons for suspicion. When the com-
mission of a crime has been brought to the knowledge of

C0UBT8 189

a magistrate, and the criminal has escaped detection, the
local officials are often held responsible, under a threat of
degradation if the criminal is not produced. If the
crime is very serious, a large sum of money may prevent
investigation. The principle of mutual responsibility
here appears in its repulsiveness : a high official of a
province once gave orders for the destruction of a whole
village if a noted criminal were not delivered, the commu-
nities or villages being considered by custom as " cities of
refuge," as well as held accountable for the peaceful con-
duct of their inhabitants.

If the party arrested pleads ^* not guilty," he may be
released on satisfactory bail; and if the bail is given by
one of the gentry, it argues favourably in behalf of the
arrested party. If the offender is convicted of a serious
offence, the one who stood his bail commits an offence by
that act, and is i^sponsible for the appearance of the
offender in case of a fresh charge against him. But
many cases, both civil and criminal, are referred to the
neighbours of the litigants or the accused, and when
they are unable to adjust matters finally, or refuse to
become bail, the case goes before the magistrate greatly
prejudiced.

The material distinction between Chinese and western
criminal jurisprudence is seen in the trial of the accused.
The great safeguard, that the accused is presumed inno-
cent until proven guilty, is reversed in China, and he is
supposed to be guilty. Thft parpntftl theory followfi him
into court and denies him the right to counsel, as a parent
would not admit an advocate for his son who had offended
him. The trial is not wholly to decide whether £he ac^
ciised is guilty or not, for his guilt is usually assumed, but
to determine the nature of the crime and the degree of
punishment to be inflicted ; and as confession is neces-

190 CHINA IN LAW AND COMMERCE

sary in order to settld the case, if the accused will not
confess, he is tortured until he does confess.

This chapter may appropriately include a quotation
from M. Hue's interesting papers on the Chinese Empire,
in which are vividly portrayed some of the charactenstTes
of a Chinese magistrate and of the administration of
justice : ^' Although somewhat inclined to doleful lam-
entation, the magistrate Pao-ngan was, on the whole,
a very good fellow, and took the trials and vicissitudes
of this nether world pretty easily. He had come into
office rather late, and only when his days were on the
decline, but he certainly did his utmost to make up for
lost time.

" He loved law to the bottom of his heart, and never
failed to make the most of it. He had two or three kinds
of myrmidons constantly employed in rummaging iq>, in
all quarters of the town,, all the little affairs that could be
brought within his jurisdiction, and his good humour
increased with the number he had on his hands.

" Such an eagerness for the fulfilmeot of duties that ^re
mostly considered troublesome and annoying could not
but appear to us very edifying, and we found ourselves
charitably disposed to admire in Pao-ngan his extraor-
dinary passion for. justice. But he speedily undeceived
us, by very frankly declaring that he wanted money, and
that a well-managed cause was the best means of procur-
ing it. ^ If it is allowable,' said he, / to make a fortune
by trade and commerce, why may not one also grow rich
by teaching reason to the people, and developing the prin-
ciples of justice ? ' "

These not very elevated sentiments are common to all
the mandarins, and they express them openly and without
scruple. The administration of justice has become a
regular traffic, and the chief cause of this abuse, I

COITBTS 191

really believe, is to be found in the insufficient remuner-
ation allotted by government to magistrates. It is ex-
tremely difficult for them to live in suitable style, with
the palanquins, and servants, and the costume suitable to
their position, if they have nothing more to meet all these
expenses than the slender resources granted to them by
the state. Their subordinates have no pay at all, and
have to indemnify themselves as well as they can, by ex-
ercising their industry on the unlucky suitors who pass
through their hands — veritable sheep, from whom every
one snatches as much wool as he can tear off, and who
are not unfrequently at last completely fleeced.

Toward the commencement of the present dynasty
these abuses had become so flagrant, and the complaints
on the subject so unanimous throughout the Empire, that
the cantons drew up a memorial against the country tri-
bunals, and presented it to the Emperor Kang-hi. The
answer was soon given, and a curious one it was. " The
Emperor, considering the immense population of the Em-
pire, the great division of territorial property, and the
n otoriously la w-loving character of the Chinese, is of
opinion that lawsuits would tend to increase, to a fright-
furamourit7lf people were not afraid of the tribunals, and
if they felt confident of always finding in them ready and \
perfect justice. As man," continues the imperial logi- \
cian, " is apt to delude himself concerning his own inter-
ests, contests would then be interminable, and the half of
the Empire would not suffice to settle the lawsuits of the
other half. I desire, therefore, that those who have
recourse to the tribunals should be treated^ without any
pity, and in such a manner that they shall be disgusted
with law, and tremble to appear before a magistrate. In
this manner the evil will be cut up by the roots ; the good
citizens, who may have difficulties among themselves, will

f ^>

192 CHINA IK LAW AND COMMEBCE

settle them like brothers, by referring to the arbitration
of some old man, or the mayor of the commune. As for
those who are troublesome, obstinate, and quarrelsome, let
them be ruined in the law-courts — that is the justice
that is due to them."

CHAPTER VIII

1CXTBA-TICBBIT0BIAUT7

It is a doctrine of international law that a state has
jurisdiction over the person and property of foreigners
upon its land and waters, and is responsible for acts done
within its boundaries by which foreign states or their
citizens are affected.

But this right, which international law recognizes as be-
longing to a sovereign state, China has partly surrendered
in the treaties which she has made with western nations.
According to those treaties the person and property of
foreigners upon the land and waters of China are exempt
from her jurisdiction, and are no longer subject to the
operation of Chinese law. The person is now under the
protection of his own flag, and his property is safeguarded
by the laws represented by that flag.

In thus surrendering to western nations jurisdiction
over their citizens and their property, although both be
within the territorial limits of China, the responsibility of
giving the necessary protection to both still remains an
obligation on China, which she is under a treaty guarantee
to perform.

In despoiling herself of half of her sovereignty and
conceding it to western nations, China has given effect
to the laws of those nations within her own territory ;
this fact is expressed by the legal term extra'terrUorialitif,

In connection with this subject China has complained
long, and with apparent sincerity. Her contention is {hat
o 198

194 CHIKA IK LAW AND COMMEBGB

western nations have forced her to enter into treaties with
them by which her sovereign rights have been partly
taken away, and yet hold her responsible, as if she were
in fnll possession of those rights.

Upon its face the contention is just, but the advocates
of China seem to foiget that as early as the ninth century
China~ha3^ granted, of her own free will, exemption from
her laws to foreigners within her territory. The Arabs
who built a mosque at Canton long before ColumBus^s-
covere J America were granted by China the liberty of
being governed by their own laws ; and the Portuguese
who settled at Macao exercised jurisdiction over their
countrymen with the permission of China. It is also
a fact that when foreign consulates were established in
the foreign settlement outside the city of Canton, the
consuls heard and determined all complaints against the
men of their respective nations, and China assented.

If the principle of local self-government has been trans-
planted to the soil of China by western nations, it was
^hrough the approving agency of China herself, for at that
period, as well as later, she could probably have success-
fully opposed such a principle.

The truth is, China wanted as little intercourse as pos-
sible with foreigners, and seeing that it was very difficult
to keep them out of her territory, she was willing to let
them manage their own household affairs, as best suited
themselves, when they took up their abode therein. The
disposition to avoid everything like trouble or responsi-
bility, which is inherent in the Chinese character, has
placed the Empire at a great disadvantage in the negotia-
tions with western countries. In the main, the common-
sense diplomacy of the West has proved an overmatch for
the finesse of the diplomacy of the East.

When, therefore, Caleb Cushing arrived in China as the

EXTBA-TEBBITORIALITT 195

accredited representative of the government of the United
States, it was not so difficult for him to secure from China
a large grant of treaty powers. China had been prepared,
by her own previous acts, to grant extra-territorial rights
to western nations, and when Mr. Cushing made the de-
mand for the grant, the subject was not new to Chinese
statesmen.

The treaty which Mr. Cushing negotiated with China,
on behalf of his government, was the clearest and fullest
that had been negotiated between China and any other
government, and was the authority for settling disputed
questions between Chinese and foreigners up to the treaty
revision of '1858-1860.

In the treaty between China and Great Britain, dated
185§, the doctrine of extra-territoriality is laid down in
Article XYL, and appears as a part of Section II. of the
Chef 00 Convention. The latter reads as follows: The
British Treaty of 1858, Article XVI., lays down that
^^ Chinese subjects who may be guilty of any criminal
act towards British subjects shall be arrested and pun-
ished by Chinese authorities according to the laws of
China.

^^ British subjects who may commit any crime in China
shall be tried and punished by the functionary authorized
thereto, according to the laws of Great Britain.

^^ Justice shall be equitably and impartially administered
on both sides.'*

The words " functionary authorized thereto " are trans-
lated in the Chinese text ^^ British Government."

" In order to the fulfilment of its treaty obligation, the
British Government has established a supreme court at
Shanghai, witli a special code of rules, which it is now
about to revise. The Chinese Government has estab-
lished at Shanghai a mixed court, but the officer presid-

196 CHINA IN LAW AND COMMEBCB

ing over it, either from lack of power or dread of
unpopularity, constantly fails to enforce his judgments.

^*It is now understood that the Tsung-li Yamen will
write a circular to the legation inviting Foreign Represen-
tatives at once to consider with the Tsung-li Yamen the
measures needed for the more effective administration
of justice at the ports open to trade.

^^ It is agreed that whenever a crime is committed affect-
ing the person or property of a British subject, whether in
the interior or at the open ports, the British minister shall
be free to send officers to the spot to be present at the in-
vestigation.

*^ To the prevention of misunderstanding on this point.
Sir Thomas Wade will write a note to the above effect, to
which the Tsung-li Yamen will reply, affirming that this
is the course of proceeding to be adhered to for the time
to come.

^* It is further understood that so long as the laws of the
two countries differ from each other, there can be but one
principle to guide judicial proceedings in mixed cases in
China, namely, that the case is tried by the official of the
defendant's nationality, the official of the plaintiff's
nationality merely attending to watch the proceedings in
the interest of justice. If the officer so attending be dis-
satisfied with the proceedings, it will be in his power to
protest against them in detail. The law administered
will be the law of the nationality of the officer trying
the case. This is the meaning of the words hui fung^
indicating combined action in judicial proceedings, in
Article XVI. of the treaty of Tientsin ; and this is the
course to be respectively followed by the officers of either
nationality."

The meaning of Article XVI. could hardly be expressed
in clearer language. It unconditionally provides that a

BXTBA-TEBBIT0BIALIT7 197

British subject in China shall be tried before a British
court and adjudged by British law.

To carry into effect Article XVI. the British govern-
ment has established a supreme court at Shanghai, which
is presided over by an official known as the chief justice,
and before which the personal and property rights of
British subjects in China are heard and determined.
Wh en a Bri tish subject does not reside at Shanghai, but at
some other~prace'Tn China, any compTalnt against such
subject is heard by the nearest British consular ofiScer,
against whose decision appeal Is optional.

Another clear provision of the article is that the Chi-
nese governmen t shall establish^a mixed court at Shanghai
for the purpose of adjudicating all mattefsih which a sub-
ject of China, residing at Shanghai, may be the defendant
and'aToreigner the plaintiff.

[nderthe favoured nation' clause other foreign nations,
havingtreaty relations with China, enjoy for their citizens
all the privileges and exemptions of Article XVI., but
the British government is the only government that has a
court established in China according to the regular judi-
cial system and organized to meet the dignity and ends of
that system.

All the other nations_exercise judicial power through
their respective consular representatives, who, when sitting
iiTa judiciar capacTty, preside over what are known ^8 con<-
sular courts

But I believe that the reader will better understand
what is meant by extra-territoriality if I select the city of
Shanghai and explain the main principles of its govern-
ment.

The city of Shanghai is about twelve miles from the
mouth of the Hwang-pu River. When Shanghai was
made a treaty port, China agreed that certain territory,

198 CHINA IK LAW AKD COMMBRGB

bordering the river and contiguous, should be set apart for
the residence of foreigners and for business purposes. By
virtue of the agreement, the government of France, in co-
operation with that of China, measured off a certain area
of land now called the French Concession, and over this
the French government, through its consular officer and a
municipal council, exercises exclusive control. At the
same time another area was measured and set apart for the
government of Great Britain, and a third for the govern-
ment of the United States of America. But it appears
that the last two governments did not accept separate and
independent concessions as did the French ; they acted in
concert, and the two concessions which were measured off
for them were united under what is now known as the
International Settlement. The International Settlement
is under the control of the foreign consular representa-
tives at Shanghai, and a municipal council composed of
nine members, who are citizens of the principal foreign
powers. When the foreign consular representatives are
considering a subject relating to the International Settle-
ment, they meet together and act as the consular body.
If the subject under consideration should be difficult of
application, or should it involve a question of diplomacy,
it is referred to the foreign ministers at Peking for their
decision.

The members who compose the municipal council of the
International Settlement are elected by the rate (tax) pay-
ers of the settlement. Before a resident of the settlement
is qualified to vote, it must appear on the ratepayers' list
that he owns property of a certain value, or pays taxes
to a certain amount, and the holding of property and pay-
ment of taxes are controlled by special regulations.

There are other regulations providing how property in
the settlement shall be assessed for taxation and how

BXTBA-TABBITOBIALrnr 199

taxes shall be collected. And once in each year the rate-
payers meet in general meeting, when the annual fiscal
budget is submitted to them for their approval, and no
expenditure is leg^l without such approval.

The regulations for the police and fiscal government of
the city, as well as those providing for the election of a
municipal council and its duties, are drawn up by the con-
sular body and approved by the diplomatic body ; they
are then the statute law of Shanghai.

The government of China collects a very small land tax
in the area of the International Settlement, and, with that
exception, China has practically no part whatever in the
imposition or collection of taxes on property in the settle-
ment.

There is a police force for the settlement, which is ap-
pointed by, and is under the management of, the municipal
council. This force is made up of foreigners, Chinese, and
Sikhs. It has a chief of police and subordinate officers,
on the same principle as the police force in a western city.
No arrest can be made in the settlement except by the
police, thus constituted, acting under a warrant issued by
a proper consular officer or, conditionally, by the mixed
court.

It has been seen that Article XVI. provides for a
British supreme court and for a mixed court, and it has
been stated that the former is organized according to the
British judicial system, but the organization of the latter
may now be explained.

The mixed court is so called because of the nature of the
cased^ that come within its jurisdiction, and because there
presides with the Chinese magistrate a foreign consular
gfficer whenever the subject before the court is not of a
purely Chinese nature.

The treaty provides that the law by which the court is

200 PHIKA IK LAW AND GOMMBRCB

to be governed is the law of the nationality of the officer
trjring the case, which means that the law governing the
proceeding and trials in. the mixedrcQiii±IiaX!&m^e lasi^;
the consular officer who presides with the Chinese magis-
trate has no authority except to watch the proceedings,
and, should he be dissatisfied, to report his reason for dis-
satisfaction to his government. The magistrate hears the
evidence, rules as to its admissibility, and delivers the
judgment of the court subject to appeal, as in the other
cases decided by lower Chinese courts.

But the magistrate of the mixed court is not allowed to
arrest a Chinese in the settlement except through the
agency of the foreign police. He has his own police,
called yamen runners, about his court, but these harpies
are not permitted to exercise their calling in the Inter-
national Settlement.

The settlement is further protected against the authority
of China to the extent that, if China should wish to arrest
one of her own subjects, residing in the settlement, such
subject could not be arrested until the warrant for the
arrest had been countersigned by the senior consular rep-
resentative. The signature of the magistrate alone would
not insure its execution. And if the Chinese who is
to be arrested is in the employment of a foreigner, the
warrant would, in such a case, have to be approved by the
consular representative of the foreigner and then counter-
signed by the senior consular representative. And after
China had conformed to the above requirement, the
arrested Chinese could still claim the right to have the
accusation against him heard and decided under the super-
vision of a foreign consular officer sitting with the magis-
trate in the mixed court.

The spirit and letter of the treaties and regulations
mean, that all who reside in the settlement, whether for-

EXTBA-TBBRITOBIALITT 201

eigners or natives, shall be exempt from the interference
of the Chinese government, that over a foreigner that gov-
ernment shall have no control whatever, and that over a
native its control shall be primarily exercised under the
supervision of a foreign official.

There are as many consular courts at Shanghai as there
are consular representatives, and a complaint against a
foreign resident, whether this is civil or criminal, must be
made to his consul, who, when necessary to a proper adjust-
ment, sits as a judge to hear and decide the issue. The
organization of a consular court will be best understood by
my selecting one and explaining it, as each consular court
is similarly organized and has about the same authority
over the men of its nation.

~No American citizen at the port of Shanghai can be
either arrested, tried, or convicted of any offence, or com-
plained against in any civil action, except by and through
the action of the coiisulrgfiueraLol-the United-States sd
America at Shanghai. Whether an American citizen
commits a criminal offence, or is amenable to a civil pro-
cess, there is no officer of China or of any other nationality
in China who has jurisdiction except a consular or diplo-
matic officer of the country of the accused. As stated, at
Shanghai the only warrant or summons an American citi-
zen is required to obey must bear the signature of the
consul-general of the United States, and should be exe-
cuted by the. United States marshal, an officer of the
United States consular court at Shanghai. In a cri minal
proceeding, when the imprisonment may be for a longer
period than sixty days, and the fine more than one hun-
dred dollars, the consul-general should not sit alone, but
ha ve two American citizens to sit with him, who are
designated, in the law enacted by Congress in such cases,
as associates. These asBOciates are usually selected, as

202 CHINA IK LAW AND GOMMBBCB

also by law provided, to sit with the consul-general in all
civil cases where the sum involved is five hundred dollars
or more. Apgeals against the decision of a United States
consular court are regpilated by laws passe d by Congress,
and this couii} is intended to be similar in organization
and powers to that of a TJniled. States dTstrict court.
At every port of China, where the United States has
consular officers, each consul has the same jurisdiction
over Americans at that port as the consul-general has
over Americans at Shanghai. Appeals against the de-
cision of a United States consular court in China are
to the court of the United States minister at Peking,
when the amount involved does not exceed twenty-
five hundred dollars; when the amount exceeds twenty-
five hundred the appeal may be made to the ministerial
court or to the circuit court of California, and the rules
governing appeals in United States courts substantially
apply.

As already indicated, the French Concession is under
the control of the government of France. Men of other
nations may reside or own property in the concession,
and they could not be interfered with by the French
authorities; but the French have a municipal council and
police force of their own, with regulations independent of
those of the International Settlement. They also have a
mixed court similar to the mixed court of the Interna-
tional Settlement, but separate and governed by its own
rules.

As the International Settlement and the French Con-
cession are contiguous, the necessity for rules to define the
jurisdiction and powers of the two mixed courts was evi-
dent, and the following are the rules which were drafted
by the consular body and approved by the diplomatic
body at Peking for that purpose: —

BXTBA-TSRRITOBIALITY 208

^^ 1. In all civil cases between Chinese the plaintiff will
follow the defendant, and will sue him before the Mixed
Court of his, the defendant's, residence.

^^ 2. In all criminal cases where foreigners are not con-
cerned and in all police cases against Chinese residents in
the Settlements, the Mixed Court of the Settlement in
which the crime or contravention has been committed is
alone competent.

" 8. In mixed civil cases : —

^^(a) If the plaintiff is a foreigner, not of French
nationality, and the Chinese defendant is a resident of the
International Settlement, he is to be sued before the
Mixed Court of the International Settlement.

^^ (() If the plaintiff is French and the Chinese defend-
ant is a resident of the French Settlement, he is to be sued
before the Mixed Court of the French Settlement.
[^^ Concession " is strictly proper.]

^^(c) If the plaintiff is a foreigner, not of French
nationality, and the Chinese defendant is a resident of the
French Settlement, the latter shall be sued before the
Mixed Court of the International Settlement, whose war-
rant or summons for his appearance, after counter-signa-
ture by the French Consul-Oeneral, will be executed or
served by the runners of the International Mixed Court
with the assistance of the police of the French Settlement,
without previous hearing in the Mixed Court of the
French Settlement.

^^ (d) If the plaintiff is French and the Chinese defend-
ant is a resident of the International Settlement, the latter
shall be sued before the Mixed Court of the French Set-
tlement, whose warrant or summons for his appearance,
after being countersigned by the Senior Consul, will be
executed or served by the runners of the French Mixed
Court with the assistance of the police of the Interna-

204 CHINA IK LAW AND COMMSBOS

tional Settlement, without previous hearing in the Mixed
Court of the International Settlement.

^^ 4. In criminal cases where a foreigner, not of French
nationality, is complainant, the Mixed Court of the Inter-
national Settlement is competent ; if a Frenchman is the
complainant, the Mixed Court of the French Settlement is
competent."

CHAPTER IX

GUILDS

If politioal and military China were as well organized
as commercial China, the foreign department of her gov-
ernment would not be so continually embarrassed by the
demands of western nations for spheres of influence and
concessions of territory. While in theory the government
is absolute, not a few of the disorganizing elements of a
democracy enter into its practical administration, and
there is no central influence going out from the capital to
the provinces to centralize political thought or control
military organization.

China in commerce presents quite a different view.
The commercial influences of the Empire are well organ-
ized and directed, and are under the guidance of expert
and competent business men. In aU the more important
marts of trade the merchants appear to know the capacity
of each market and to regulate ventures accordingly. Of
course mistakes are made and failures follow, but the
commercial life of China is perhaps as free from business
errors as that of any nation.

But any knowledge of China in commerce would be
superficial without a clear understanding of the origin, the
power, and the iilfluence of the guilds. The guilds are
organized upon carefully defined principles, and their scope
and influence in business cannot be successfully over-
looked. TKttjr pfi^Yflr lipi g^iK^Ti**^ tha Jughest officials of
a province, and emperors listen attentively to their com-

206

v"

206 CHINA IN LAW AND OOMHEBGE

plaints. If judged by their iuflaence, they have somewhat
more than a semi-official status.

^ ine guilds hav6 enjoyed a long life in China. The
ancient annals of the Empire give accounts of them,
but their origin is succinctly set forth in the con-
stitution and by-laws of one of the largest and mdsFin-
fluential of these organizations as follows : ^^ Wei Kuan
[gu&ds] were first established at the metropolis by man-
darins, among compatriots or fellow-provincials, for mutual
aid and protection. Subsequently, merchants formed
guilds like those of the mandarinate, and now they exist
in every province." At Peking a majority of the mem-
bers are generally of the official class, but in the provinces
of the mercantile class. It would seem that at the capital
the necessities of the gentry and lower officials demanded
some such organization for mutual protection against
the greater influences which dominate there. In the
provinces the merchant class associated as a means of ad-
vancing their business relations by regulating and adjust-
ing them according to rules which were framed by each
guild for its special guidance. The rules of the guild
organized in the province in which the port of Ningpo
is situated declare that the guild has the twofold object
of protecting its members against sectional prejudices,
to which settlers from distant places are subject, and
preventing litigation among its members. These two
main objects are made known in the preamble of the
guild in the following words : " For a century no prov-
ince has been without Ningpoese residents. Ningpo is
a maritime region. Those of its people who cannot
find employment as agriculturists resort to other places
for trade. Here at Wenchow we find ourselves isolated, —
mountains and seas separate us from Ningpo, — and when
in trade we excite envy on the part of Wenchowese^ and

GUILDS 207

suffer insult and injury, we have no adequate redress.
Mercantile firms, each caring only for itself, experience ])
disgrace and loss — the naturar outcome of isolated and
individual resistance. Itis this which imposes on us the
duty of establishing a guild.''

Of course the regulations of a guild are to promote the
objects for which it was organized, as each guil d has its
own particular business. There are the bankers'^'gnild,
fhe~Eea' guild, "EKe" silk giiild, the piece-good s laruild^ and,
others. Many of the larger and more -^s^Athj gpiilds
h ave their headquar ters in the princi;)al provincial cities
with branch offices or subguilds in the smaller cities and
towns.

If the constitutions and by-laws of the guilds of China] f^
could be codified, doubtless they would form a most inter-
esting and instructive code of mercantile law. It would
probably be a code in which some of the underlying prin-
ciples of modern mercantile law could be traced, or, it
may be, prove the foundation of other codes on the
subject.

The headquarters of the wealthy guilds are usually the i
most palatial buildings to be fuuud in "a dlinese cify. j
They contain not ohljTthe Hall where"l;Ee members^eet,
but also rooms set apart for the lo dging, of high
officials when travelHng, and for scholars en rotUe to the
metropdiitaii examinations, and places for theatrical per- '
formances. The officers consist of a gener al inanage r
and a committee, who are elected annually, but are eligible
for reSlecironr "There is a permanent 8ecfetary,"^o is a
scholar of literary rank and who Is paid a sa lary. The
guilds invariably select scholars of literary rank for their
secretaries, because such, by virtue of their literary posi-
tion, are recognized as having an official standing, and be-
cause the delegate of a guild has access to the official class.

/

208 CHINA IK LAW AND COMMERCE

The secretary is the medium of correspondence. He is
regarded as the guild's legal representative in defending
itsliileresT brlhllemanding redressTor an injured member.

The deliberations of a guild are intended to be dignified
and conservative. With this object in view the member-
ship is limited to about thirty, and the junior partn era of
a p artnership ar e not allowed to attend the meetings.
TBere are no written parliamentary rules by which the
proceedings are to ^ governed, but there are regulations
such as one which a guild found necessary to adopt in
order to protect itself against useless debate. The resolu-
tion reads as follows: *^At the public meetings of the
guild, should there be any one of higher abilities than the
rest, with a plan of his own to propose, whatever his
station may be, he must argue and explain the case before
all the members. He must not continue to dispute the
matter after it has been decided, as such a proceeding is
useless when there is no one to second it ; that will prevent
waste of the guild's time."

The revenue of a guild is derived from self-imposed
taxes on commodities sold by the members, and to know
what amount has been thus sold, a searching proceeding
is provided for. On this subject a by-law of a Canton
guild reads : ^^ At the annual meeting members shall hand
in duly sealed statements of their contributions for the
year, making obeisance in the guild temple in asseveration
of good faith. In the event, however, of confusion in
any account or its being called into question, it is under-
stood that, notwithstanding that the member shall have
already testified to its accuracy before the gods, a ballot
shall be cast to decide whether the member whose account
is doubted shall produce his books for the inspection of
the members. If the account proves to be false, he sball
be fined five times the amount due, and if he refuses to

GUILDS 209

produce his books or submit to the finding of the meeting,
he shall be expelled from the guild." Further to secure
accuracy there is a monthly inspection of the books of
every establishment connected through its members with
a guild. The inspection is made by clerks of various
firms in rotation, two being detailed every month where
the firms are numerous. There is no busin^saJ

English origm that would submit to any such\mquisitori^
proceeHIngs, but in China the system is self-imp%ed and
works satisfactorily.

That members may not stray off and engage in litiga-
tion, the guilds have provided for the settlement of disputes
in their own households by lawsTikiB^thB foHowlng : *'It
is agreed that members having disputes about money mat-
ters with each other shall submit their cases to arbitration
at a meeting of the guild, where the utmost will be done
to arrive at a satisfactory settlement of the dispute. If it
prove impossible to arrive at an understanding, appeal
may be made to the authorities, but if the complainant
have recourse to the official direct, without first referring
to the guild, he shall be subjected to a public reprimand."

Another rule to prevent members from going to law
reads : ^^ Among members of our compatriots who come
here there are those who engage in business transactions,
and have current accounts, as well as those who enter upon
joint speculations. It is impossible to say that disputes
may not arise among them. If anything of the sort
occurs, the guild may settle the difficulty in the manner
most advantageous to all. Justice shall be observed, and
the facts of the case brought to light, and the matter be
decided according to what is right. That justice may
be manifested, there must be no concealment."

I have been careful to point out the regulation that
gives a guild the inquisitorial right over the business of

i^

210 CHINA IK LAW AKD GOMMEBGE

members as well as the two regulations that compel the
submission of disputes, not business disputes only, to
final adjustment under the penalty of expulsion. _It is
such power over members that giYQS to.a guild Jte^com^
pact organization and its influence in commercial China.
In another place in this chapter attention will be directed
to the manner in which in some cases that great influence
has been exercised.

Not only are there comprehensive regulations meant to
indicate the general scope and functions of a guild, but
also on specific subjects there are rules which relate to
the minutest details. There are the rules on ,sale by
credit, fixing the dates of payment according to the
nature of the articles sold.

The charge for storage, with attendant responsibility,
is provided for by the following rule : ^^ It is decided that
the seller of goods shfdl store them for seventy days free
of charge ; but if they are not removed till the seventy-
first, they shall be charged a month's storage; if not
removed at the end of that period, they become charge-
able for two months* storage the first day after ; and so on.
Contravention of this rule subjects seller and purchaser
alike to a fine equal to twice the regular amount of
storage, the fines to be paid into the treasury of the
guild."

With reference to weights and measures there does not
appear to be any common standard, but provision is made
by some of the guilds for standard steelyards and meas-
ures : ^^ It is agreed that the guild shall keep a standard
set of weights and measures, which shall be adopted by
all members, that there be no light issues and heavy
receipts. Should it become known that a member is
using scales at variance with the standard set, he shall
be heavily fined."

GUILDS 211

It is the custom of some of the guilds to maintain fire-
engines, and the members are required to aid in extinguish-
ing fires. There is a rule which makes the seller o^ goods
in storage the sufferer for their loss by fire for five days
after sale, but when these are destroyed later, the pur-
chaser makes good the loss. In case of destruction in civil
strife, it is agreed that purchaser and seller shall be equal
losers.

Another rule is, that ^^ no business shall be transacted
before the middle of the first month of the year, that
goods sold in the tenth month shall be paid for by the
middle of the twelfth, those sold in the eleventh shall be
paid for in the second month of the year following, that
goods sold in the first month shall be regarded as if
sold at the beginning of the second, and that from the
first of the second month the forty, fifty, or sixty days'
credit allowed to certain commodities respectively shall
commence. It is provided also that goods sold in the
twelfth month shall be taken by the purchaser, or be liable
to charge for storage."

Although the guilds have great influence in official
China, they are careful not to compromise this influence
by any protection to a member who does not promptly
pay his dues to the government. ^^ The consequence of
attempts at evasion or fraud in matters of the revenue
involving fines by the authorities must be borne by the
individual implicated, who must clear himself of all
trouble as best he can, as the guild will not concern
itself in such affairs." But a guild will undertake to
assist in the recovery of stolen property. *^ Any member
concealing a robbery or retaining stolen property, in order
to exact a heavy ransom, shall be fined ten times the
value of the goods, and if he fail to pay the fine, he shall
be expelled from the guild."

\

212 CHINA IK LAW AND GOMMSBOB

If western merchants have introduced any irregular
business methods into China, t he practice of fictiti ous
buyin g and sellin gs is not one of them. The Chinese
merchant was anadept in the practice of fictitious selling
and bujring before he had any business relations with a
western merchant, and to such a demoralizing extent did
he carry it that the guilds, many of them, have adopted
string ent ru les against_the _practice._ True, the practice
is not made an offence by the statutes and criminal code
of China, but there is a law against monopolizing xnsLTz.
kets so broad, comprehensive, and distensible as to in-
clude penalties against all mercantile transactions that
are inimical to the. public, weal. There are two cases
specially reported of imperial intervention to prevent
and punish monopolies. In 1823 a censor memorial-
ized the Emperor respecting fictitious traffic in bread-
stuffs, representing that certain merchants, availing
themselves of a drought that was affecting the food sup-
ply, had established syndicates for fictitiously buying and
selling cereals. The Emperor acted upon the memorial
by commanding the high provincial officials to issue pro-
hibitory proclamations against the practice. I have before
me a regulation of a guild which reads as follows : ^' It is
agreed that, fictitious buying and selling being illegal,
this guild interdicts that to its members. If violations
of that law come to our knowledge, we will transmit to
the authorities the offender's name ; assuredly no favourit-
ism will be shown." The Code provides: "When the
parties to the purchase and sale of goods do not amicably
agree respecting the terms, if one of them, monopolizing
or otherwise using undue influence in the market, obliges
the other to allow him an exorbitant profit, or if artful
speculators in trade, by entering into a private under-
standing with the commercial agent, and by employing

GUILDS 218

other unwarrantable contrivances, raise the price of their
own goods, although of low value, and depress the prices
of those of others, although of high value, in all such
cases the offending parties shall be punished with eighty
blows each for their misconduct.

^^ When a trader, observing the nature of the commercial
business carried on by his neighbour, contrives to suit or
manage the disposal or appreciation of his own goods in
such a manner as to derange and excite distrust against
the proceedings of the other, and thereby draws unfairly
a greater proportion of profit to himself than usual, he
shall be punished with forty blows.

^^ The exorbitant profit derived from any one of the fore-
going unlawful practices shall, as far as it exceeds a fair
proportion, be esteemed a theft, and the offender punished
accordingly, whenever the amount renders the punishment
provided by the law against theft more severe than that
hereby established and provided. The offender shall
not, however, be branded, as in the ordinary cases of
theft."

It has been seen that a guild is an association of men
who are supposed to have a common interest at stake, and
that the meetings are regular, in order that all matters
relating to their several businesses may be freely and
fully discussed and rules formulated for conducting the
same. The combination reaches with its influence every
trade interest that is common to its members. Its de-
cisions are not called into question, but are implicitly
obeyed under the pain of a heavy penalty. The inner
workings of the guilds are not generally known. The
members are prohibited from discussing its affairs in public
or giving any information on subjects coming within the
province of a guild. This is an example of the mysteri-
ousness which is always an accompaniment of Chinese

214 CHINA IN LAW AND OOMMBBCB

doings. Complication is the delight of every association
of Chinese.

The guilds no doubt had their origin in the necessities
of the times, but the authority which they have assumed
and their illiberality have ab6ut^ceasedrtdT>e beneficial to the
development of the legitimate business interest of China.
Their present status is not only one of a domineering com-
mercial authority, but they have extended their power-
ful influence to political, religious, and social questions.
To incur the displeasure of a_guild means religious and
social isola tion and commercial ruin. in3"the Chinese,
with their native instinct for trade and finesse in ways
mysterious, have no equals as boycotters when aided by
associations and combinations like guilds', On this point
I copy from a report by a commissioner of the Swatow
Imperial Maritime Customs: —

^^ These institutions seem to be a material manifesta-
tion of a local characteristic of the people, for not only
do merchants combine for trade purposes, but the labour-
ing classes, whatever their employment, all band together
on the slightest pretext, whether their object is to obtain
wages, or to secure the dismissal of an outsider. It is
recognized throughout the Empire that in their remark-
able faculty for combination, and the rigid obstinacy with
which they maintain a position once taken up, the people
of Swatow are equalled by none of their fellow-country-
men. In addition to the ordinary expenses, the guild
has to spend a good deal in making presents to officials,
giving theatrical performances in their honour, and show-
ing them respect in various other ways. The income out
of which all these payments are made, amounting to sev-
eral thousand dollars in a year, is derived from a tax on
merchandise, entrance and clearance fees from merchant
vessels, and the rents of property owned by the guild.

GUILDS 215

So far as I can gather, the guild's methods of working
seem to be as follows: Whenever a question "crops up
affectmgany particular trade, the heads of the principal ..^^
firins engaged in it first come to some agreement amongst y
themselves, then talk over the lesser firms, until they have
gained a sufficFent following, and only call a meeting of r^ J
members to adopt what they have agreed upon as a rule
of the guild. Nothing seems to be left to^jft. yote Jn open
meeting ; if the dissentients are strong, the matter never
comes before a meeting at all. Frequently the guild
does not wish its actions to be visible, and then no laws
are committed to writing, but a general understanding is
arrived at, which seems to be just as binding as a formal
utterance. IfiTthis way, most likely, they masked their
resistance to the imposition of extra provincial likin — the
Battery Tax — in 1890, when no dealer in the taxed arti-
cles dared to come to any arrangement with the collectoi*s
sent up from Canton, who were unable even to rent a place
in which to establish themselves, so that eventually all
attempts to force payment had to be given up. By the
guild's decrees steamer companies are forced to pay claims
for damaged uninsured cargo, which they feel to be unjust.
If they demur, no case comes up for trial ; the loss of their
carrying trade is the penalty that quickly makes the
objectionable demands seem reasonable* In 1881 some
Swatow merchants were heavily fined for disregarding a
customs rule afifecting the examination of cargo. The
guild took the matter up with spirit, and an anonymous
note called upon merchants to cease all import and export
trade unless their demands were complied with. In that
particular instance the g^ild was unable to gain the point
for which it was fighting, but the trade was kept com-
pletely at a standstill for fifteen days, pending its decision
to submit. The guild concerns itself with the conmiercial

/

216 CHINA IN LAW AND COMMERCE

interests, individual and collective, of its members, settles
trade disputes, enacts trade regulations, and p erfonn s,
with equal readiness, the functions of a Chamber of Com-
merce, a Board of Trade, and a Municipal Council. It
supports a fire-brigade, levies its OMm taxes, provides
standards of weights and measures, fixes rates of commis-
sion, determines settling days, provides penalties against
the tricks of trade, and acts generally as the guardian of
its adherents, and the terror of all with whom they do
business. It possesses a power to enforce its views which
might be envied by many a government, for in it is vested
the sole right to the exercise of that mighty engine, that
stalwart crusher of arguments, to which an episode of
modern Irish history has given the name of boycotting."

The above extract is a comprehensive summary of the
scope and power of guilds in regulating and controlling
the internal trade of the Empire. The sympathy between
business interests, which is so essential to a healthy and
prosperous condition, haa.been injuriously affected by
the gprasping and close-corporatiofik nature of modern guilds
in China; ^ • '

But foreign business and foreign firms have not escaped
the influence of guilds. They can interfere and have inter-
fered with the commercial relations of western merchants
in China, and there are examples to prove how seriously
such relations have in consequence been impaired. I
select a few from the reports of the Blackburn Mission
to China. *^ A branch in Canton of a well-known Hong-
kong piece-goods firm was, for some reason or other,
given up, their clients at once transferring their business
to the Hongkong house, whither they proceeded in
order to purchase their requirements. Sometime after,
an attempt was made by Hongkong to reestablish the
branch house, never doubting for a moment that the pres-

GUILDS 217

tige of former existence would procure their wish. But,
in the meantime, new interest had been created in favour
of native agents, dealers, and transit companies, who were
not prepared to give up such business as had been ac-
quired. The piece-goods guild at once took the matter
up, and a boycott was established against the foreign firm,
an action which was only satisfied by the final and per-
manent giving up of the objectionable branch house. A
like experience was the lot of a Shanghai firm, which, some
years ago, attempted to establish a branch house in a
northern port. This venture was looked upon as inter-
fering with vested interests^ and the firm was charged
with taking away the living of agents, etc. A boy-
cott ensued in which Shanghai was worsted, and serious
losses were incurred. Again, a Shanghai firm, well estab-
lished in Hankow as importers of Indian opium, was
warned by the Swatow Opium Guild that the time had
come when the distributing trade of this drug should be
entirely in the hands of natives. Shanghai, feeling itself
secure in its strength, simply laughed at the implied threat,
but from that day forward the Hankow branch house
could not sell an ounce. Traders and dealers alike trans-
ferred their business to Shanghai, and to-day not an ounce
of opium is sold in Hankow by any foreigner."

An instance of the influence of a guild came under my
own observation at Shanghai in 1898. It is the custom
that when a Chinese who hails from Ningpo dies at
Shanghai, his body is put into a coffin and stored away
until the opportunity ofiFers to send it to Ningpo. The
subject is one that comes within the jurisdiction of the
Ningpo guild, which keeps a house on the French Con-
cession at Shanghai for such a purpose. There were a
great many coffins containing dead bodies stored in that
house, and the French Municipal Council had ordered

218 CHINA IN LAW AND COMMERCE

•

their removal in the interest of health and the conven-
ience of the public, but the guild made known its intention
to resist the removal. The Council insisted, and a riot
was the result. Several Chinese were shot by the French
police and volunteer force, and it was then that the Ningpo
guild issued a secret order for the suspension of all busi-
ness. There is a valuable trade between the province in
which Ningpo is situated and Shanghai, and much of it is
carried by steamers running between the ports of Shang-
hai and Ningpo, but when the order of the guild was issued,
several large steamships remained moored at their wharves,
and the business which drew its vitality from the source
indicated was at a standstill until the order of the guild
was revoked.

If what has been written above affords an insight into
the agency of guilds in shaping commercial China, it is
now in order to refer to their relations with official
China.

It must be evident that in a country, wherein exist
organizations such as those above written about, with the
power and influence described, the central government
must be proportionally weakened. Such was the case on
the continent of Europe, for when civil life was the strong-
est there, the central government was the weakest.

And such is now the case in China, for the central gov-
ernment would hesitate to consider, against the known
wishes of the guilds, almost any subject, whether its bear-
ing were political or commercial. There are instances
in which both the local and provincial officials have
been overruled by the central government in favour of
a petition of the guilds. I have before me the case of
certain Ningpo traders whose exportations of rice were
being very much embarrassed by the local authorities, and
who, failing to obtain redress from their provincial author!-

GUILDS 219

ties, appealed to Peking. Their appeal was favourably
considered, and they secured exemption from further
annoyance.

The rule s of a guild are r ead in th e courts of China as
if thej were a part of the statut ory law of the Empire.
With reference to questions before the court such rules
determine the decision of the court as if conclusive on th e
law relating the reto. The status in court of a member of
a guild Is more aaauied than^.that of .one who is not a
member. Often questions relating to commerce which
come before a court are referr ed to a^uild for settlement,
and invariably the report of the guild is accepted as final.
Under certain conditions, guilds defend their members
when litigants, and scarcely would a Chinese judicial offi-
cer be so bold as to deny to a guild the privilege of appear-
ing before him for that purpose.

But there is no seeming display of authority when a
guild exercises its semi-ofBcIal function. The utmost
deeorum and courtesy are observed. Nothing is done to
subordinate the court or to cause its officers to feel a sense
of inferiority. And it is through so much considerateness
that a guild feels its way to the highest stations.

It is on record that the chairmen of several of the
guilds' committees have associated^with locaT officials in
such government functions as the arranging of local tax
assessments and tithes, the organizing and managing of
fire-brigades and militia forces, the settlement of more
important bankruptcy cases, the raising and administer-
ing of relief funds, and the control of orphanages and
asylums. And the much-discussed 2iim.Jbdx. is sometimes
farmed out to guilds in return for a. fixed annual subsidy.
In this way the officials ^re enabled to meet promptly the
demands on their respective exchequers, and the guilds
readily avail themselves of the opportunity to place pro-

^ r

220 CHINA IN LAW AND GOMMEHCB

hibitive exactions ou the goods of any one not a mem-
ber, and thus debar outsiders.

The Chinese secretary of the United States Liegation
at Peking (E. T. Williams) has translated into English
some recent Chinese legislation relating to commercial,
railway, and mining enterprises, and there appears among
the regulations one with reference to Chambers of Com-
merce, the second paragraph of which reads as follows:
^^ Commercial guilds and mercantile associations^ of what-
ever name, which have been already established by various
trades in the several provinces at various ports, mus t
change themselves at once, in compliance with the regu-
latrons now issued by this Board, into Chambers oi-Gem*-
merce, so that where such associations have not been
established heretofore, there must at once be made a
systematic investigation of the importance of their trade,
that Chambers may be established if needed. As to the
various Bureaus charged with the protection of trade, the

I viceroys and governors must determine whether or not

; they are to be retained or abolished.'^
/ Apparently from the above paragraph the central govern-
ment had made up its mind to reform the most influential
agency in the internal trade of China by neutralizing the
power of the guilds, but the closing sentence of the para-
graph clearly directs that nothing is to be done without the
consent of the highest provincial authorities, and thus
the subject remains about as before.

It has been a long time since the government of China
has recognized the necessity of legislating at all, but from
Williams's translation there does appear to be a slight
awakening, and if it could be made to move on central
lines, some good might result. At presen t, legislation is
left too much to the provinces. The more important func-
tions of government should 'remain and be exercised at

GUILDS 221

Peking, and not delegated to provincial ofiScials. If the
central government appreciates the necessity of curbing
the dominating authority of the guilds in the business
affairs of the Empire, the subject ought to be decided at
Peking, and, from the capital, an unconditional edict ought
to issue decreeing what should and what should not be
done. C hina is in the rear-guard of nations and it is i
mainly because the functions df^er government, although |
inliheofy'centralized with so much exactness, are in prac- I
tice scattered and undirected.

v^

CHAPTER X

BUSINESS 0UST01C8

Fbom the earliest ages the Chinese have been pre-
eminently a trading people. Their acuteness and sagacity
were not surpassed by that of any contemporary nations.

In the thirteenth century, while western nations were
steeped in medissvalism and internecine strife, the Chinese,
under their Mongol suzerain lords, carried on a valuable
trade both on land and sea. Vast fleets of merchantmen
vended the products of Chinese art, industry, and inven-
tiveness in the regions bordering on the east and south
coasts of Asia, from the ice-bound limits north of what is
now known as the Premorsk to the African shores of the
Red Sea. The large and small islands of the adjacent
waters proved excellent markets for Chinese sea-borne
wares long before the days of Vasco da Gama.

Prior to this period, when the mastery of the eastern
seas was held by China for the purpose of conducting her
external trade, the Romans, in 166 A.D., considered it to
their interest to open up business relations with China,
and sent an ambassadorial mission for that purpose.
These intrepid warrior-merchants dared all the fatigues
and dangers, associated in those days with travel by land
and sea, to facilitate the purchase of the marketable wares
produced in China.

This mission, which seemingly entered China from the
south, somewhere near Canton, seems to have been for
the time a failure from a trade point of view, but less

BUSINESS CUSTOMS 223

than a century later, through the agency of Persian
and Parthian merchants, Chinese goods, such as pearls,
precious stones, and the finest of silk and cotton fabrics,
were disposed of in the City of the Western Seas (Rome)
at very high prices.

The great Greek merchant monk, Cosmas, hands down
from the middle of the sixth century of the present era
records of the maritime trade of China at the time 6f the
Byzantine Empire. The Moslem power seems to have
been the means of destroying the commercial intercourse
between the two greatest of the early commercial Empires,
Greece and China.

The principal articles concerning which one can find
any authentic information, and which indicate the nature of
such business relations, are the potteries and porcelains,
which, found in Rome and other cities, display the handi-
craft of the Chinese ; but there are some who consider that
many of the gold ornaments discovered in Italy have a
Chinese origin, as the gold contained is of similar colour to
that found native in China, and the designs are certainly
Chinese. Arab merchants, in the eighth and nintU cen-
turies, undoubtedly learned many of their designs in gold
work from the Chinese, the style being quite distinct
from the early Egyptian. The records left by the Arabs
give most authentic and detailed accounts of the great
trade done by China and the methods pursued by Chinese
merchants, as well as the class, value, and quality of goods
generally produced. The introduction of Mohammedan-
ism was due to the Arab traders who, originally coming to
China for commerce, formed a settlement near Hangchow
Bay and were killed during a rising or became absorbed
in the race.

The overland trade of China, as well as the sea-borne
traffic, was, in the early part of the thirteenth century, of

224 CHINA IN LAW AND COMMERCE

such magnitude that it attracted the attention of all the
known writers and travellers of the Middle Ages; and,
thanks to them, one has information which could never be
obtained from Chinese sources, owing to the Chinese cus-
tom of withholding or destroying it. Great as the external
trade undoubtedly was and continues to be, it was and
is nothing in comparison with the internal or domestic
commerce of the Empire. Such trade could not be con-
ducted on the ^* happy-go-lucky *' principles permeating
the ordinary and everyday life of the natives of China ;
accordingly commerce evolved business principles and
business instincts surpassing in method and enterprise
even those of the Jews.

China possesses no school of commerce except that of
experience, and, from early boyhood, those intended for a
business life have to devote a number of hours each day
to the trade or work which is to be their future calling ;
but such training is not given at the expense of literary
education, it is in addition thereto. These youthful ap-
prentices seldom during their apprenticeship — except,
perhaps, at the close thereof — really assist in the running
of the business, but simply watch and instinctively absorb
the system adopted by their superiors or masters. To this
may be attributed the fact that for so many years China has,
in business matters and methods, been so ultra-conserva-
tive. There is nothing to encourage the initiation of new
ideas amongst the young. All dealings, in the past and
at the present day, were and are regulated by precedents,
locally called *^ oUo custom '' ; the chief and most far-reach-
ing in effect of all these customs being the employment
of a " fostook " or go-between, a character who enters into
every possible phase of life in China.

It is often said that the Chinese are not over-scrupulous
in their business dealings amongst themselves or with for-

BUSINESS CUSTOMS 225

eigners. This, however, as a generalization, is a mistake,
chiefly owing to the fact that the foreign merchant is
so keen on his own business and the putting through of
the same. He is further handicapped by the idea that it
is only waste of time to study the Chinaman, his language,
manners, and customs, regardless of the fact that there is
no other way to understand a Chinaman's ideas, methods,
and requirements ; and, accordingly, everything is left to
the fo9took^ who occasionally brings about misunderstand-
ings, the Chinese merchant, in consequence, being dubbed
unscrupulous. At business and at the securing of the best
bargains the Chinese merchant is a much keener man than
many a foreign merchant with whom he deals directly or
indirectly. If the Chinese merchant be caught practising
methods not altogether moral in business, he stands to
lose ^^ good chances '^ in future deals, and therefore self-
interest, if no higher motive, induces him to keep his
word when once given. As an illustration of the correct
dealing of the Chinese, should an authoritative and
properly drawn-up agreement be arranged between any
one and a Chinese merchant, by which the latter borrows
a sum of money, large or small, promising to repay the
same, with a definite rate of interest, this day five or ten
years, at a definite hour, that money is already as good
as returned at the precise time and date, even if the
borrower should be dead. This comes about through
the two great ruling principles of Chinese daily life, —
face and filial piety (misnamed ancestor-worship), com-
bined with the responsibility of the unit. That is to
say, the children and relatives are as responsible for
the fulfilment of a properly drawn-up contract as would
be the original signer ; otherwise the latter would lose
face or prestige in the next world, and the immediate
successors and the subsequent generations would also

226 CHINA IN LAW AND COMMERCE

come in for loss of prestige. Such is the theory ; but
occasionally the love of money here is stronger than the
fear of the hereafter. From the foregoing it may be
understood that, when a bargain is concluded, the Chinese
thoroughly appreciate the necessity for the fulfilment of
their obligations ; and this is one of the chief reasons
why the commerce of China, and " open doors " thereto,
has been made a ruling diplomatic subject.

The foreign merchant is generally sure that as soon as
the Chinese merchant takes delivery of the goods shipped
on his account, so soon will the equivalent therefor be
placed in the hands of the trader or shipper.

Sometimes with regard to payment for goods ordered
on his account the Chinese merchant cannot restrain his
natural commercial instinct or love of bargaining, and
every possible argument may be advanced to prove why
payment should be deferred and the delivery postponed.
Such contentions, however, arise out of circumstances
unforeseen when the bargain was originally struck, such
as a narrowing of the market demand for the particular
goods ordered, or an unprecedented fluctuation in the rate
of exchange, by which, if the merchant accepted delivery
and met his obligations, he would be, to all intents and
purposes, ruined. Face would compel him to fulfil his
contract, even to his ruin ; but the foreign merchant or
shipper, if enlightened in things Chinese, will not press
hard under such circumstances, and his leniency is gener-
ally rewarded by increased business with that customer,
who also introduces further business amongst his merchant
friends when the conditions of the times improve.

From this it will be seen that the chicanery, attributed
by some to the Chinese merchant in his business relations,
is more in seeming than in reality. The trade of China
and the trading instincts of the Chinese, combined with the

BUSINESS GUSTOliS 227

business principles on which this trade is conducted, would
seem to justify the Chinese contention that their coun-
try is in a forward state of development when compared
with any and all other countries. In no other country is
the constitution of trade founded on such simple lines as
those which facilitate the interchange of commodities in
China, and, despite this simplicity, nothing is forgotten
which would tend toward the protection of producer and
consumer. This is brought about by the system of trade-
unions and guilds. The truth regarding the forward con-
dition of the more simple commercial undertakings in
China must strike all those who have had an opportunity
.of seeing and carefully noting the enormous volume of
internal trade, and the facility with which internal
traffic is handled, notwithstanding the lack of railways
and such means of rapid transit as are now, fortunately,
being pushed rapidly forward through foreign enterprise
and through the political influence being brought to bear
at Peking.

The transit facilities offered by the vast natural water-
ways and the numerous artificial canals and creeks are
utilized in such a simple and businesslike manner that
enormous quantities of goods for local or internal consump-
tion are transported with the greatest ease and methodical
preciseness by densely laden native craft, by the aid of a
vast amount of the cheapest labour in the world procured
from amongst the coolie or working class. The business
instincts of the Chinese tell them that, when time is no
object, heavily laden sailing craft are more economical
means of transport than fast-going steamers, and it
also tells him that water transit is always more eco-
nomical than land transportation. Water transport is the
usual carrying medium in the coast regions, and over
the districts intersected by the natural waterways, canals,

228 CHINA IN LAW AND COMMERCE

and creeks of south and mid China ; where, however,
these do not exist, as in the hill country, and far in
the interior to the southwest, west, and north, other means
of transport are adopted according to the prevailing local
conditions.

As the coolie is the cheapest and most docile carrier of
burdens, strong and able to live on little, taking up little
space and requiring no comforts, his tissues and endurance
are utilized to the fullest extent, under varying conditions
and methods appropriate to those conditions for effectually
transporting the major volume of internal trade. The
single man with a bamboo pole and goods in various-shaped
baskets slung at each end gives place on occasion to the
bamboo carried by two coolies suspending the weight of
goods between them. For heavy weights a large number
of bearers grouped in pairs will suspend the article in
transit from the centre of a number of these bamboo
poles. Passing from this stage, one gets the wheelbarrows
of different descriptions, so intimately associated with the
name of China and the Chinese. There may be seen,
according to the bulk and weight of the articles to be
wheeled, one man shoving the barrow without assistance,
or the wheeler assisted by varying numbers of pullers
with ropes attached to the front bar of the barrow. It is
extraordinary the quantity of goods that can be trans-
ported in a single day, to great distances, by this seem-
ingly primitive method. To the wheelbarrow may be
added the single-man handcart with two wheels, where the
man is again assisted by a number of pullers. It is obvious
that both the wheelbarrow and handcart methods of trans-
port can only be adopted in a fairly level country for the
transport of heavy goods. Another method is the pack-
mule, pack-donkey, or pack-pony, and the methods adopted
for the packing greatly vary in different districts. Some

BUSINESS CTTST0M8 229

simply use a very primitive pack-saddle made of young
sapling ash or oak, bent into the required shape by steam-
ing it and then drawing the ends in toward each other and
tying them as required. These U-shaped crosspieces are
kept at the required distance by transverse strips attached
thereto, and these latter act as the guys to which the rop-
ing is attached. The pack-saddle is lifted on a saddle-
piece made of solid wood shaped to the form of the
animal's back, and lined on the inside with straw covered
with cotton or cloth. In other places the pack-saddles have
attached to them oval-shaped baskets two feet to two
feet six inches in depth, and two feet in greatest length,
and from a foot to eighteen inches in greatest width. In
these baskets are packed all the smaller commodities, while
those of larger bulk are stretched athwart the animal, and
rest on top of the baskets so as to equalize the weight.
In the regions round about Peking, in Shansi, Shensi,
Kansu, and from the Great Wall in to that expanse of
country stretching to the north through Mongolia, and
northeast through Manchuria, the cart is found ; some carts
drawn by a single pony, mule, or donkey, some covered
carts, known as Peking carts, others open. Then is seen
the same cart with animals driven tandem, or in teams
varying in number in accordance with the extent of the
burdens or the difficulties of the road. Sometimes in these
teams one may see ponies, mules, donkeys, and oxen used
indiscriminately to pull the one cart. When going up
mountain passes, the carters assist the animals by levering
on the wheels, but the spectacle of a caravan climbing a
pass or steep mountain highroad is nothing to that witnessed
when the descent is being made. According to the steep-
ness of the road, one, two, or more animals are unyoked
and brought to the rear of the cart, where ropes are at-
tached to the shoulder collars, which are thus dragged up

230 CHINA IN LAW AND COHMBRCB

toward and grip the head behind the ears. The animal
is made to sit back on its haunches, and is dragged for-
ward by the rope, and of course tries to back away from
such treatment, and in this manner is improvised a primi-
tive but effective brake, preventing the cart from too
rapidly descending the steep road.

From Chili northward, northwest, and northeast, the
camel is made great use of, the droves varying from half
a dozen to thirty animals according to the resources of the
owner. In Peking large droves of these ungainly but
useful beasts of burden may be seen bearing large baskets
of an excellent anthracite coal brought in from the
"Western Hills."

I have dwelt at some length on the primitive methods
of transit suitable to and utilized by the Chinese. Trans-
port is conducted as a regular business in each province
and district, there being actual carrying companies with
large vested interests in the business of transit, that for
the sake of these vested interests oppose most strenuously
all foreign innovations, such as railway enterpt*ises, which
they imagine will reduce their profits.

These carrying interests were a great factor in giving
the Boxer movement of 1900 its anti-foreign tendency
in the north of China, as that was the portion of the
country most affected at the time by railways, which had
not then begun to increase subsidiary traffic, but had
absorbed that usually carried by carts or similar means.

All methods for facilitating transit have such a direct
bearing upon the business relations and enterprises of a
country that some knowledge of local conditions is
necessary in order to understand the reasons why the
already vast trade is not vaster.

It may be taken as a general rule that junk transport
costs the shipper 2 to 4 cents (Mexican) per ton mile ; by

BDSIN£SS CUSTOMS 231

creek boat, towed, 4 cents per ton mile ; by hand-pro-
pelled creek or shallow-draft sailing boats, 3 cents per ton
mile ; by coolie carrier, 20 to 30 cents per ton mile ; by
wheelbarrow, 15 to 20 cents per ton mile ; by handcart
with single coolie, 12 to 15 cents per ton mile ; by hand-
carts with pullers, 12 to 15 cents per ton mile ; by pack-
donkey, 15 cents per ton mile ; by pack-mule, 8 cents per
ton mile ; by pack-pony, 10 cents per ton mile ; by large
cart, 5 to 8 cents per ton mile ; by camel caravan, 10 cents
per ton mile.

The small boats on creeks carry seldom less than 1^
tons ; coolie carriers can bear 240 pounds for short
distances; pack-animals vary, they carry from 150 to
224 pounds depending on the animals and the condition
of the roads or paths of the country. I have sometimes
seen as much as 350 pounds in weight packed on the
large and sturdy mules. Peking carts, with single ani-
mals, usually carry about 800 to 900 pounds, but over half
this amount may be added for each additional animal
until the bulk capacity of the cart is reached. The large
muleteer carts of Mongolia and Manchuria, sometimes
seen in Chili, have an average capacity for 1^ to 2 tons.
The camel of north China usually transports 600 to 800
pounds.

As much as one ton is packed on the wheelbarrows in
the regions round Peking, but in such cases the pulling is
not done by men, but by two donkeys, one mule, or one
Chinese pony, and even by bullocks, and the man between
the handles has an ingenious method of balancing the
barrow with a strap over the shoulders, the ends of which
loop on to the handles, thereby taking the great strain off
the arms and hands.

The essential principle of trade, that of buying in the
cheapest market and selling in the dearest, is ingrained in

232 CHINA IN LAW AND COMMERCE

the mind of the Chinese to a point of fineness perhaps
beyond the skill of western merchants ; but in some cases
this is considerably modified amongst this conservative
democratic community, and in particular is this the case
in the power exercised upon a trader by an old and
well-established name of a firm, an old and familiar ^^chop"'
or recognized trade-mark or brand on goods. The power
of the chop and of the old firm is, however, slowly
disappearing from progressive trade in China, as is wit-
nessed by the fact that the long-established trade in Man-
chester piece-goods such as drills, jeans, and sheetings, is
gradually giving way to the trade in similar products from
the United States.

Other things being equal, the Chinese are usually
guided by cheapness,and that term ^^cheapness" has become
the all-alluring chop to fascinate the commercial instincts
of all classes of native merchants in the Empire. The
Chinese can always find a use for commodities that are
brought within their scope by cheapness. One often
hears the term in China, ^^ My no can use, my no savey so
fashion," but, on probing for information, one will find
that the commodity can be used by the Chinese, but it is
too dear, and the Chinese does not like to say so, lest
he should lose face.

Pay 'day 9. — It is usual for foreigners to settle all
accounts at the end of each month, but the native merchant
seldom does this when trading with his own countrymen.
With them there are three pay-days in the year, and these
days are not identical in each province, except the great
settling day of the Chinese New Year, when much is
pawned or mortgaged, and when many valuable articles
may be procured at a fraction of their cost because the one
pressed for money must meet all calls upon him. Under
this long credit, or three pay-days' system, the native

BUSINESS CUSTOMS 233

broking merchant may lie out of his goods' equivalent for
five, six, or even seven months, although in the treaty port
he has met his own obligations, within five days of taking
delivery of foreign goods. Up-country accounts pass
over the next pay-day, and are only balanced on the
second pay-day. If, therefore, the goods are delivered
to an up-country trader one day before a pay-day, the
vendor has only to wait four months and a day for his
equivalent ; but if the same goods be delivered one day
after pay-day, he cannot be reimbursed before one day
short of eight months. This system, therefore, of long
credits tends to nullify the general business idea of
obtaining profits by rapid turnover, and must hurt trade
generally.

Although the purchasing retailer up country cannot be
called upon to make payments, except as above stated, he
has the option of paying in full or in part his account
before the appointed date. If he should so elect, then he
is entitled to interest at the rate of one and one-fifth per
cent per mensem on the amount paid in, for the balance
of the term of account. This is a hard and fast regula-
tion, emanating from the ** Piece-Goods Guild," and rec-
ognized not only by all engaged in that trade, but by other
trades and trade-unions as well.

Ready-money sales on a large scale are, to all intents
and purposes, unknown to the Chinese merchants, except
in sales over the counter in retail transactions.

Payments as a rule are made in goods of native or local
production plus a cash balance, where gombeenmen or
middlemen are the actual travelling merchants. And in
this way both the up-country and down-country journeys
are made to yield their profits. When, however, it is a
particular kind of merchant, engaged in a particular line
of goods, who is the vendor, and he has no interest in

284 CHINA IN LAW AND COMMEBCB

bringing goods to the coast, then payments by native
letters of credit or hard %ycee are made. The former may
be arranged through native banks or between native
merchants whose good names are generally known far
and wide throughout the country, and for this amongst
other reasons their letters of credit are accepted freely,
even by foreign travellers going on long journeys in the
interior. So-called ^^ shoes " of 9yeee are nothing but ingots
of silver varying in weight and fineness ; the weight called
^^ tael," or Chinese ounce, varies considerably in different
provinces, thus enabling the bankers to secure a squeeze
or illegitimate interest. For instance, 1000 yuping taels
are only the equivalent of 999^ hiioping taels (or goods
balance taels).

Second quality silver laopiaotsuse is the medium for
payment in foreign miscellaneous goods transactions, but
is paid as an equivalent worth on the huoping balance.

Fostooks or Go-betweens, — As the Chinaman dearly
loves bargaining and will spend hours, days, weeks,
months, even years, in the preliminaries of a contract over
which a westerner would not think of wasting five
minutes, it becomes necessary that some one, who can
spare time and knows the heckling arts to a nicety, should
be employed to do the hard talking and wasting of time,
so that the principals may be left to carry on their or-
dinary vocations. This individual is the go-between
(^chiu cKie^ or mean Jen) and acts the part of the fostook
in countries in which marriages also are arranged by third
parties.

The fo8took or go-between is one of the most important
personages in transactions in China which have a busi-
ness aspect of any kind, and he must not be confounded
with the gombeenman or middleman trader. As his name
implies, his occupation is that of fostooking^ ue. seeking

BUSIKB8S CCJSTOMS 285

where the best bargains can be arranged for him who
wishes to dispose of any particular commodity, and for
him who wishes to secure the same. He is the commercial
traveller, or travelling agent, for him who wishes to sell
and for him who wishes to buy. He has numerous pa-
trons of both classes, and his position from a commercial
standpoint is a very important one for foreign merchants
and agents to consider. So strong indeed has his position
become in the up-country trade of China that the go-
betweens have formed a trade-union of their own, and
their demands and regulations must be considered by all
classes of native trader, if not by officials. Of course there
BLTefostook9 of different classes, but it is only the mercantile
bargainers who have as yet formed themselves into a
union.

Some writers have given the go-between the position
of a trading middleman, but such a definition is very far
from defining his calling. He is, of course, a commission
agent, but his commission depends on a definite rate of
interest arranged with his patrons and only payable,
should his negotiations end in a successful carrying
through of a business deal, whereas the gombeenman may
buy the goods and hawk them, until a purchaser is secured
at a rate which the former considers will remunerate
him for his outlay and trouble. As a rule the gombeen-
man knows his market before he makes a purchase, but at
the same time there is a good deal of risk in this call«
ing, whereas the fo%took only risks his many fares while
travelling to fix a bargain. The gombeenman attends auc-
tions in the foreign settlements of the treaty ports, and
thus buys goods very much under their local market value
and vends them up country as direct purchases from the
producers' agents in the treaty ports.

The go-between generally starts his special calling in

236 CHINA IK LAW AND GOMMERCB

fixing bargains between friends, and when he has accu-
mulated sufficient capital to cover travelling expenses,
he broadens his field of labour, by which time he, like the
broker and stock-jobber in countries endowed with
western civilization, is supposed to have at his command
all information regarding the particular goods with which
he deals.

He does not appear directly in ordinary retail business
carried on between his friend the retailer and the public
customer. Whenever the transaction is one on credit
account, thefoBtook is called in by his friend to supply
information regarding the financial soundness of the
purchaser.

It may be taken as a general rule that the fo9took con-
fines himself to one particular line of goods, concerning
which he soon acquires an expert opinion. Sometimes,
however, if his joumeyings carry him far afield, he
becomes a canvasser for the vending of one class of up-
country products and one class of down-country com-
modities.

As before mentioned, iYiefo9toohi work on commission,
which is generally secured from the seller, but often a
cum9hafv is paid by the purchasing side, if he con-
siders an advantageous bargain has been struck from his,
the purchaser's, point of view ; the commission is the first
thing arranged, and it varies from two and one-half to
five and one-half per cent, according to the distance sepa-
rating the buying and selling markets and the difficulties
of travel.

The go-between is in fact commission agent or com-
mercial traveller and acts the part of the advertising
columns of foreign press mediums, since he too always has
first-hand information, relative to time and place of land-
ing of the particular goods with which he is directly con-

BUSINESS CUSTOMS 237

cemed, the place where they may be purchased, and that
where they may be ultimately marketed. As they depend
entirely for income upon the result of putting through a
deal, they are as a class undoubtedly the keenest business
men in China, and their opinion, if obtainable, is always
worth having. Although familiar with their known
abilities, foreigners have directly utilized this class of
Chinese very little for pushing new wares into the in-
terior, and this is mainly owing to the fact that their
occupation and trade status is altogether misunderstood
by western merchants and manufacturers.

Of course both sides are liable to be duped by the/ot-
took as to the quality of the goods to be vended on the one
side, and as to the credit and financial ability of the pur-
chasing merchant on the other ; but, as such malpractice
can only yield temporary gain, the far-seeing instinct of
the fo9took doing a large trade, keeps him straight
through self-interest, if through no higher motive.

Doolittle, in this connection, says : ^' The go-between,
by coming to a private understanding with the buyer, is
able sometimes, by dint of plausible prevarication or
downright lying, to make more money for himself than
the sum to which liis regular commission or percentage
would amount.'^ This statement would undoubtedly be
true in cases of isolated bargains, but where transactions
can be looked upon in the light of commercial business,
then the risk of losing face and ultimate profits on con-
tinuous bargains, tends to legitimate practice on the part
of the go-between where the commission agreed upon is
the only remuneration.

Doolittle, in condemning the/o«tooi or go-between sys-
tem, advances the argument, amounting to a general asser-
tion, that ^' the buyer is particularly liable to be duped
by the go-between through the complicity of the seller,

238 CHINA IN LAW AND COMMERCE

provided the go-between thinks he can practise the decep-
tion without the probability of detection/' but he immedi-
ately gives a reason militating against the general practice
of such deception, in the following words : ^^A regard to
their reputation and the prospect of future employment
by the principals, doubtless, often has a great restraining
influence over the middlemen who are tempted to dupe
and defraud."

From his mixing up the position of the middleman (a
trader) and the go-between (an arranger of bargains), it is
evident that Doolittle did not pay the attention to the
customs and practice of these people which he generally
bestowed on subjects of commercial and general interest
in China.

At the present time the foreign principal and the native
principal seldom or never come in contact in connection
with a commercial transaction, all negotiations being
carried on by the chief foBtook of the foreigner, dignitied
by the name of compradore^ and his satellites of the one
part, and thefostook^ or commercial traveller or bargainer,
of the native merchant of the other part.

The worst feature of ihefostook system is that the native
or foreign importer is absolutely under the thumb of the
^^ associated go-betweens" who in reality form nothing
more nor less than a commercial travellers' union, so
powerful in organization that its members can bring influ-
ence to bear on provincial officials to oppose the opening
up of further treaty towns. They are quite aware that
the more this class of towns is opened up the less will
become their influence in arranging bargains at a distance,
and this is at present their most remunerative employ-
ment.

The importers must directly or indirectly concede the
demands made by the associated go-betweens, otherwise it

BUSINESS CUSTOMS 239

would be rendered more difficult for them to secure a
market for their wares at any reasonable profit. That
is not always apparent to foreign merchants, owing to
the roundabout methods adopted by the Chinese in all
dealings and transactions.

By the law of custom the go-between is held responsi-
ble for any trouble that may ensue out of a bargain trans-
acted through him, but — and this is unusual in China —
responsibility is closed with the grave. If his responsi-
bilities are heavy and almost ceaseless, the fo9tooh finds
compensation in the power he wields for developing or
crippling the trade of both foreigners and natives in
China.
/ Trade ExcluBwr^ — In business and commercial matters
f6mgn traders and merchants have themselves to blame
to a considerable degree for the impaae at which matters
regarding export and import trade have arrived. The
European as a trader is undoubtedly distrusted, though
in the case of the Anglo-Saxon race this distrust is not so
plamT^The methods pursued by the early Portuguese
traders, and later by the Dutch, were anything but
creditable to the citizens of their countries, and contrib-
ute to the contempt which the Chinese displays for the
European. Referring to the effect of this conduct Sir
John DaVis says: "To this day the character of the
European is represented as that of a race of men intent
alone on the gains of commercial traffic and regardless
altogether of the means of attainment. Struck by the
perpetual hostilities which existed among these foreign
adventurers, assimilated in other respects by close resem-
blance in their costumes and manners, the government of
the country became disposed to treat them with a degree
of jealousy and exclusion which it had not deemed neces-
sary to be exercised toward the more peaceable and well-

240 CEOKA IK LAW AKD COMMERCE

ordered Arabs, their predecessors." It may not be
over-Sattering to Europeans to be compared with Arabs,
and if European conduct was on a lower grade than
that of the Arab, there must be some justification for
the policy of exclusion and anti-foreignism pursued by the
Chinese from the government downward. At the same
time the benefits of exclusion fade completely before the
injury to such a business community as the Chinese in
their most vital spot, namely, the mutual exchange market
on which the commercial life of a nation depends.

It was the present Manchu dynasty which inaugurated
the policy of exclusion, and it is the same governing body
which is responsible for the continuation of antagonism
to the introduction of foreign goods and foreign ideas.
One reason advanced in explanation of this narrow-minded
policy is that of self-preservation. The Manchus are
afraid that one or another of the foreign nations may,
through the name of trade expansion, gain by this sub-
terfuge the complete mastery over China, just as the
present dynasty secured the dragon throne for itself
through pretending to put down anarchy on behalf of
the weak ruler who then occupied that throne.

A just appreciation of Chinese ideas and susceptibilities
in business dealings may go a long way to combat the
policy of exclusion, and establish commerce on a friendly
and business footing, thereby nullifying what might be
termed the existing armed truce and rSgime of mutual
suspicion.

Many of the crimes attributed to the Portuguese, which
resulted in the birth of anti-foreign feeling and exclu-
sion, were really perpetrated by the half-caste children
of the early Portuguese settlers. To these Eurasians'
habit of raiding, in large parties, the neighbouring villages
and seizing the women and virgins whom they carried to

^

BUSINESS CUSTOMS 241

their homes, may be attributed the anti-foreign flame of
1545, which consumed eight hundred Portuguese and over
ten thousand native Christians associated with the Portu-
guese and their half-caste progeny.

Neither the central government, nor the provincial
governments, can continually oppose the will of the people
once combined for a certain purpose, although such gov-
ernments may succeed in diverting the path of any move-
ment and thereby minimize the effect. What is true in
general is true in trade, and if the Chinese should be con-
ciliated by those intending to transact business with them,
the door of exclusion would soon be battered down.

Exclusion does not affect the foreign trader alone, but
is inter-provincial if not inter-prefectural in effect. If an
intelligent Chinese conceives an idea of starting some new
industry in a province to which he actually has no blood
tie, he is unable to get a footing until he has conciliated
local prejudices by interesting some of the natives of the
district in the shares and possible profits of his enterprise.
If this can occur amongst the Chinese themselves, what
chance has the foreigner who does not know it is worth
his while to win local prejudice or opinion to his side by
interesting local natives of influence in his undertaking ?
The engagement of locskljompradores is not . enough-to
break'down'^the barrier of local ex clusion^ and until
foreigners understand this, the policy of exclusion will
continue. The foreign trader first thinks of the risk and
of the amount he stands to lose on a transaction, but the
first thought of the Chinese is, ^^ What is this going to
be worth to me? " When he sees a factory going up, for
any purpose whatsoever, he says, ** How much am I going
to get out of this? " If nothing, then the foreigner or the
native from other districts must be excluded by fair means
or foul. All foreigners who wish to succeed in China

242 CHINA IN LAW AND COMMEBCBS

must learn to *' maintain the local interest " ; they must
graft their new-fangled ideas on the ancient Chinese
customs*

Trade-uniohs. — Trade-unions were a natural outcome
of loan^lubs or loan associations, as the latter taught the
Chinese the power wielded by combinations. Unions or
associations are generally grouped under the term ^^ humh'^
or '^AtaV the special trade or calling being prefixed
thereto.

Such unions are not so much for the purpose of mini-
mizing output and crippling employers as for regulating
conditions and prohibiting oppression. Masters and men
frequently belong to the same trade-union, and by so
doing minimize the chances of aggression which might
tend to the injury of the interests of either master or
servants. They will combine to boycott a newcomer in
the same class of trade if he should come from another
district or province, and more particularly if the new-
comer be the citizen of a foreign nation. If, however,
the local interest is maintained by strong local officials,
gentry or merchants being induced to take part, then
these unions assist the new venture and newcomer.

A striking incident in this connection was the starting
of the bean-oil and bean-cake mills at Newchwang, where
the Cantonese, understanding the customs of their own
country, were enabled to initiate and establish this re-
munerative industry by encouraging local Chinese and
local Manchus to take a monetary interest in the under-
takings. As a set-off against their success, take another
incident : a certain foreign firm of shippers and agents tried
to establish a mill on modern principles, and all figures con-
cerning it went to prove its ultimate financial success ; no
local interests were, however, considered worth concili-
ating, and what was really established was not a sue-

BUSINESS CUSTOSiS 248

cessful oil mill, but a successful boycott by the bean-cake
workers' union.

Another incident was that of a canning establishment
at Chinkiang, where no local interests were taken into
consideration, and as game, canned or fresh, is relished by
the wealthy and official Chinese, this business, from figures
regarding possible and probable consumers, should have
showed a very rosy complexion ; but what was the result ?
With no local interest considered, the local markets were
barred to the products, and the materials for canning were
sold at a price far higher than need have been paid had
local sentiment been softened in a Chinese way. Need-
less to say, the company is not now canning at Chinkiang.
Such incidents will necessarily besmirch with failure the
page of foreign enterprise in China, until the foreigners
engaged in commerce and industrial enterprise within the
Empire cease to think in an insular manner of commercial
matters and study the requirements and characteristics of
the Empire — the greatest commercial and business com-
munity in the world.

A H pe rsons engaged in one class of business are obliged,
not by law but by custom, to join the union of that special
trade and be subject to all its regulations. Should a
newcomer on starting business fail to enter, or refuse
to pay forfeit for violations of the union's rules, he would
be hampered in all his transactions in many directions.
The special union would communicate with the employees'
union, and the newcomer would find himself faced with
the petty annoyance of his shop-hands or workmen leav-
ing him one by one just as they were getting into the
run of the business, and to save himself from ruin he would
have to join the union. The various journeymen, tailors,
wheelwrights^ catrpenters, boatmen, carters, etc., all com-
bine in their separate trade-unions to fix the price of

244 CHINA IN LAW AND COMMERCE

labour, etc. This is particularly felt in the building trades
of the treaty ports and foreign settlements, as the labourers
work hand in hand with the building materials merchant
and thereby keep up the cost of building. This is
to their personal advantage, as they are paid very much
according to the class of architecture and the materials
used in construction.

The traveller in China, if he understands Chinese, is
generally struck by the uniformity in the prices prevail-
ing throughout a town or even a district. The cost of
certain commodities is just the same in a large general
store as in a small trader*s shop, but the explanation is
simple enough, since all prices are fixed by the local
union, and all traders in the same class of goods must
belong to the union. Another thing which puzzles the
stranger is that, when trying to bargain in a native shop,
he is met by a stolid refusal, but that after dark some
one quietly goes to his residence or temporary location
and sends in the article, asking the price offered by
the would-be purchaser. The reason for this is that
when a stranger goes to any shop or warehouse in any
part of China, he or she is usually followed by a gang of
idlers, whose only business, it would seem, is to satisfy at
any cost their extraordinary faculty for idle curiosity.
Where there are so many listeners, there are bound to be
a number of talkers and tale-bearers, and the price he or
she offers for the goods and the price he or she pays for
them is straightway disclosed to the other members of the
same union. If the trader should have squeezed a high
price from the stranger, he is considered to be a good man
of business by his trade fraternity ; but if he sell below the
agreed-upon price of the union, then he sees looming before
him seats at the theatre for all members of the union, or a
dinner at the best restaurant in the town ; in either case all

BUSINESS CUSTOMS 245

the expenses coming from his exchequer. His anxiety to
sell, however, makes him risk the rules of the union when,
after dark, there is little chance of his being found out as,
should the goods be detected on the way to your house,
all he has to say is that he is trying to induce your
servant to obtain a fair price from you.

In many trades the prices of articles or labour,, fixed by
the unions, are either written or printed, and then posted
in the various shops or workshops coming under the con-
trol of the special union, and the head of the shop or
workshop can always refer to them when pressed to reduce
his price.

At stated intervals, generally every three or four months,
all interested in a union meet together in some restaurant,
temple, or theatre and discuss all matters relating to their
business and alter their rules if change be found necessary.
At the meetings there is always a feast, the expenses of
which, together wifB {hosg'x rf d evo tions to a particular
god or goddess interested in their special trade, and of
attendance at a theatrical performance, are defrayed out
o f the pooled fines of such as hjiye broken the rules of the
union ; and if these are not sufficient to meet the calls, then
the funds from menilBers^ subscriptions defray the balance.
£ach trade-union has its committee and executive officers,
who keep a tally of all information that is likely to affect
the special trade, and when matters of sufficient impor-
tance arise, special general meetings are called at which
the committee are instructed how to act and what public
notices to issue. Sometimes the executive officers of three
or four unions meet to discuss matters which may affect
directly the collective interests of all, after which a special
general meeting is called of each union, and the result of
the general executive consultation laid before the various
members of each union for approval, etc.

246 CHIKA IK LAW AKD COMMERGB

From the very fact that proprietors, foremen, and work-
men, engaged in a particular line of business, all belong
to the one union, the effect must naturally be a benefiting
of that trade, and a tendency to minimize the possibility
of disputes between capital and labour, so common in west-
ern countries ; and as a final result, there is very little
chance of the dislocation of general trade through such
agencies as strikes, except in places where the natives
have absorbed into their system the worst traits of the
westerners. An instance of this was given in the great
wheelbarrow strike and riot in Shanghai. Had, however,
any of the municipal counciPs employees, undei*standing
Chinese, belonged to the wheelbarrow union as ^* master
members,*' then the strike would have been minimized in
effectt -if ^nDt^nmontheijover on an amicable understanding.

Bu9ine99 Associatian^ — For centuries, in business as
In nil othoF-phftses of life, the Chinese have taken the lead
in what in the twentieth century are called ^^ combines."
These combines, though of simpler organization, are as
efficacious in the commercial life of China as are the
" trust s " in t hat of western nations. They are not digni-
fied by the high-sounding name of " trust," but are rather
simply known as hurui or ** associations," and it is the am-
bition of every man, woman, or child to be interested in
one or other of these associations.

One of the most important of these associations isJbhe
*^ money loan association." These money loan associations
are not friendly societies, but friendly clubs, where mutual
help is the predominating factor which counteracts the
tendency to consider interest on every possible occasion.
These clubs are usually formed of a limited number of
friends and relatives of a Chinese who has got into tem-
porary money difficulties, or requires the immediate use
of a definite amount of money, not immediately at his

BUSINESS CUSTOMS 247

command, in order to put through a good piece of busi-
ness, without having to pay any interest on the money
borrowed.

The membership of the club depends, first, on the sum
of money required by the borrower, and secondly, on the
resources of his associates. If, for instance, the bor-
rower desires the immediate use of a clear 91000, and his
friends can afford to put up $100 each, then the member-
ship would be of eleven associates, but if they can only put
up $25 each, then the membership will be of forty-one asso-
ciates. Forty members would apparently put up the
required $1000 in $25 shares, but this would not be the
case in reality, as the borrower wants the immediate use
of a clear $1000, and he does not himself subscribe at all
at the first drawing. Therefore there must always be the
extra man to make the sum a clear round amount. The
man in immediate need of funds notifies his friends that
he is about to start a loan association, and gives the
capitalization of the shares he wishes to issue, and the
number thereof. If the friend accepts the membership
offered him, he is presented with a pass-book containing
all details of the association, capital, number of members,
amounts and dates of payments, drawing^ etc. A book of
the same class, but on a more detailed scale, is retained by
the organizing borrower, who is de facto the head or chair-
man of the association, and in his book a complete page is
devoted to the account of each member, as well as a page to
each meeting of the association and the business conducted
thereat.

So universal are money-lending associations of every
^class that paper merchants consider it worth their while
to keep large stocks of account-books suitable for any
and all such classes of borrpwings. They have a yel-
low cover, with space in the middle for filling in the

248 CHINA IN LAW AND COMMEBCB

date underneath, which is printed, ^^ Started on the lucky
day," a space being left for filling in the name of this
day, while at the left-hand side is marked off, with red
lines, a space for filling in the name of the associated
member. The books begin with the printed regulations of
each particular case according to the particular class or
amount of loan, and, with the statement of its origin,
leaving thereafter space for inserting any particular rule
agreed upon between the associates. These spaces are
cancelled or filled in at the conclusion of the first meeting.

The loan associations usually hold their meetings once
every moon or Chinese month, but sometimes they only
hold them on the lucky days occurring every four moons.
Big borrowers generally arrange for annual meeting^
while amongst the poorer classes, or ^^ cash " loan associa-
tions, the meetings are generally weekly or fortnightly.

The originator or chairman of the association, being the
one in immediate want of funds, draws the full amount of
the subscriptions collected at the first meeting, which,
he arranges, shall meet the actual sum he immediately
requires. At subsequent meetings each or any of the
members has the right of drawing or borrowing, provided
he has not previously drawn from the association. There
are three methods by which such drawings can be ar-
ranged : (1) by seniority ; (2) by lottery ; (3) by bid-
ding for the right. This latter is the most popular and
most convenient to the members, as it enables the one
most in need of funds to outbid his associates. And this,
though the loans are supposed to be without interest,
actually gives such a return, small though it may be.

The bidder does not actually hand over the hard cash
of his bid, and the bidding is not conducted like an
auction, but each one puts a written statement of his bid
in an envelope, and these envelopes are opened by the

BUSINESS CUSTOMS 249

chairman, who announces the name of the highest bidder
and the amount of the bid. As previously indicated,
the originator need not bid, and if the agreed loan is
$1000, he receives the full amount then ; if there are
eleven members, ten have each to pay in his $100. At
the second meeting, should the highest bid on paper be
$5, then, though the successful bidder is responsible for
the return of $1000 in ten instalments of $100 each, he
only receives $995, the $5 being equally divided as a
reduction in the amount to be subscribed by each. The
same system is practised at each of the subsequent draw-
ings. If $5 is the bid at each of the subsequent meet-
ings, except the last where the drawer has no one to
bid against but himself, he, the last drawer, has to pay, in
all, the first drawing of $100, and nine drawings of $99.50,
or, in all, $995.50 for a borrowed $1000.

It simplifies the whole seemingly intricate system if
one considers that each member, except the head, lends to
every one else, and all, including the head, borrow from
the other members. The uses of such clubs will be f uUy
appreciated when once the benefits they confer on some
one hard up or pressed for money, who would be too proud
to ask or receive a loan from a friend, are thoroughly under-
stood. Many friends and relations may be relied upon for
such club assistance who would think any other form of
loan a degrading charity. These loan clubs or Ye Swui
must not be confounded with mercantile associations or
capitalists' associations.

The capitalists' associations are similar to American )
trusts and have held sway in China since the Mongol
dynasty. They are evidently an outcome of early similar
associations formed amongst the ancient Mongolian princes
to develop their separate and mutual interests while shar-
ing the risks. In Mongolia all the peasants owe vas-

250 CHINA IN LAW AND GOliMSBGE

salage in a greater or less degree to these more or less
powerful princes. The vassalage is generally taken out
in service or labour, and all the labour or service capital,
so to speak, is associated under each prince. When any
particular work or fighting had or has to be done by a
prince, then the friendly neighbouring princes cooperate
with him, until the work in hand is completed, and he in
turn gives his assistance to each of the other princes in the
association as required. In this way this capitalists' associ-
ation works like the Ye Swuiy and enables each prince
to call for labour as his crops ripen or require planting.
This kind of affiliation pays exceedingly well.

Capitalists' associations are frequently called into being
by high officials when taxes fall short of the required
amount, the local treasury being one party to the associ-
ation, and the Peking requirements are thereby settled in
bulk without pinching the local resources. These same
capitalists' associations frequently found banks and large
operative and cooperative undertakings in trade.

On the other hand, mercantile associations generally
concentrate their attention and resources on the marketing
of goods. The members are generally wealthy men, who
are not usually engaged in commerce but who continually
watch the general trend of supply and demand in various
markets. Suddenly there is a lot of visiting between
them, a dinner and the details of subscribing a large sum
are arranged, and the association thus formed starts buy-
ing through its fostook or go-between a certain class of
goods, chartering junks through another fostook^ and
finally placing such goods on a certain market, where
there is a large demand. On occasions these mercantile
associations are most charitable. I have witnessed occa-
sions when famine has resulted from drought and excessive
floods, and then one or another of these associations

BUSINESS CUSTOMS 251

corners the market of cereals and other produce in
districts where these are plentiful, and ships them to the
area of distress, there, instead of trying to sell at fabulous
prices, which necessity would compel the sufferers to pay,
the association frequently sacrifices the goods at a loss,
though it would be considered degrading to the recipient
if the goods were actually given away in charity.

When, however, single individuals send food-stuffs to
the scenes of distress, they invariably take advantage of
the local difficulties to benefit their purse.

To such an extent does the club system go that one can
see, all over China, poor farmers clubbing their meagre
funds to buy an ox, which is to be used in turn for tilling
their land or turning the millwheel. The turn is arranged
by drawing lots, each member dropping out of the draw
after his turn, until the animal has completed the whole
circle of owners. Carrying coolies will club together to
do the business for a certain district, unless they and the
district are run as a business by head-men. Many are the
towns in which certain classes of crippled beggars are con-
fined by mutual agreement to one particular route. Then,
the paid mourners at a funeral agree amongst themselves
to form clubs for separate districts and different priced
funerals. They work to a nicety, pool the funds, and,
having made allowance for expense in garb for attending
funerals of different classes, the balance is divided among
all the male and all the female mourners. Brides-elect
and those about to become mothers get up clubs to buy
trousseaux.

There are money-lending clubs under other names, sym-
bolical of the methods of receiving or paying back the
amounts ; but all have really the same object • in view,
namely, getting one's friends to put up a large sum, at a
moment of financial difficulty, or when there is the chance

252 CHINA IK LAW AND COMMBBCB

of putting through a profitable piece of buBiness, provided
the first borrower can lay his hands on a commanding sum
of money. A few of the peculiar names of these clubs are
of interest, as well as their reasons for being so called,
such as : The Snake easting its Skin Clvh. As the snake
casts its skin very slowly at regular intervals, it may be
accurately inferred that the borrower returns his loan
gradually at regular interval^. Here there are no draw-
ings, except the one, and no pool, except the one, the
members being called at regular intervals to receive grad-
ually and singly the amount originally subscribed by
each. The order of repayment at these subsequent meet-
ings is decided by lottery in the form of dice-throwing.
Another typical name for one class of these clubs is. The
Dragtm-headed ClvAy and as the head of the dragon is
much larger in proportion than any other separate part of
the body, the deduction is readily drawn that the first
payment by each member is much larger than any subse-
quent single payment. The Teipo JSwui or Spread on the
Qround Association is another, somewhat similar to the
first association described, but as the head need not neces-
sarily be the first drawer, or even a member entitled to
draw, but rather a paid secretary, it will be seen that
there are considerable smaller differences. The head's
salary is not a definite sum per month or week, but he or
she (since women are not debarred from these associations)
gets as commission half of one single individual's sub-
scription, paid to him or her by the drawer at each meet-
ing. The lucky drawer is fixed by bidding, and the bids
are marked by counters of different lengths of bamboo,
each length representing so many dollars or portions of
dollars according to such length. The one who has put in
the greatest combined value of bamboos is the purchaser of
the. particular drawing.

BUSINESS CUSTOMS 258

The status of an association in China is generally
recognized, and the officials punish an absconder there-
from very severely ; on the other hand, the claims of
money loan associations have been ruled out of court, in
Hongkong, should the number of associates be, or exceed,
twenty, as under the laws of the colony any collection of
twenty people in money transactions must be registered
as a company. In the case, however, of the associates being
less than twenty in number, any proceedings coming
before the court are tried on their merits.

There are interesting rulings of the court of the colony,
one being that of Judge Sir James Russell ; in this he
found that the head of an association, in which all details
were not completed according to the rules thereof, was
liable to be sued for the money had.

Judge the Hon. F. Snowden defined the legal dif-
ference between the Te Stout and Teipo Hvmi as follows :
*^ Inasmuch as the head of the former gets the full
amount of the first drawing, he is responsible for the
future payments to the other members, but as the head of
the Teipo Hwui only gets a commission on each drawing,
and only puts himself or herself to the trouble of collect-
ing, and does not make him or herself responsible for
the various members paying their amounts, he or she can-
not be held responsible for future payments from or to
anpr members."

Pawn9hap9> — Unlike money loan associations, which
are, essentially, conducted on mutual trust principles, the
pawnshops of China are definite commercial undertakings
and amongst the high classes of business with which a
wealthy Chinese gentleman may be connected. They
are recognized by the governments, both central and pro-
vincial, and are taxed and registered in their different
classes, of which there are three distinctive, namely:

254 CHINA IK LAW AND COMMBBGE

(1) TangPo Tien, (2) Chi Tien, and (3) Yah, Numbers 1
and 2 are legitimate institutions, being registered and pay-
ing definite taxes on capital and having to fulfil certain
obligations within the district, such as assisting the provin-
cial governor, district magistrate, etc., when a sudden im-
perial call for revenue finds the official exchequer in light
condition. A tax on the yearns profits, or on goods stored,
is levied, or even the collection of local taxes is pledged to
the pawn-office proprietors for a certain period. This latter
is a most profitable arrangement for the pawn-office pro-
prietor, as in all cases of farmed taxes the holder has
enormous chances of squeeze. Number 8 is an illegal in-
stitution and is unregistered except in the treaty ports, but
has nevertheless to pay taxes, and is liable to be raided at
any moment by yamen runners, as it is the recognized bureau
for the receipt of stolen goods. Should a yamen runner,
detective, or petty official find any stolen goods in any of
these houses, he simply confiscates the property, returning
it to its legitimate owner, in lieu of the customary cumshaw
or squeeze, while the pawn-office proprietor must neces-
sarily stand the loss. As a result goods pledged in the
shops of the third class do not yield a big advance, and the
period of such advance is very short before the goods are
sold, varying from six weeks to six or nine months.
Bundles of tickets are bought up indiscriminately by
pawn-ticket merchants and retailed in the streets at the
purchaser's risk, particularly in the case of third-class
pawn-office tickets, as the purchaser might find on arrival
at the shop that the goods connected with the ticket had
already been removed by the yamen runners.

The power of these runners to seize pawned goods in a
third-class pawn-office, without giving a voucher or com-
pensation for the same, is frequently abused by these
official hawks. Many articles which have never been

BUSINESS GIJ8TOM8 255

stolen at all, but please the eye or the avarice of the
runners, are carried away under the pretext of restoring
stolen property.

Taken generally, the laws relating to pawnshops are
strict and equitable in conception, but in fulfilment there
are great differences in the interpretation of the terms
"strictness" and "equity." However, travesties of law
and justice in relation to the pawn-office seldom occur
with shops of the first or second class. An interesting
indication of the legal status of pawn-offices is obtained
from the following excerpt from a despatch sent by Kung
(taotai of Shanghai) to British Consul-General Hughes
(of Shanghai), and published in the minutes of the munici-
pal council^s meetings, 1888, with the whole correspond-
ence on the subject of a foreign pawn-office established in
Shanghai: "Every Chinese subject who opens a pawnshop
is bound to take out a license from the Chinese govern-
ment for which he pays a fee. He is also bound to
receive government deposits, the interest on which is
devoted to government purposes, and to pay various
monthly taxes in addition.

" Owing to the large increase of late years in the num-
ber of unlicensed native pawnshops (yaA), the legitimate
business of the petitioners has already been seriously en-
croached upon, causing them serious loss, in addition to
which, this year, in consequence of a decree from the
Board of Revenue at Peking, they have had to pay the
government dues for twenty years in advance. The latter
call they cheerfully met in recognition of the protection
they expect to obtain from the government for their
trade."

In passing I might mention to those interested the fact
that this incident also illustrates one of the cases of the im-
possibility of attempting to start anything new in China

256 CHINA IK LAW AND COMMERCE

without conciliating the local interests. This particular
petition was met by an absolute refusal on the part of the
council to have any foreign enterprise within the foreign
limits interfered with by either Chinese tradesmen or
Chinese officials. Nevertheless the foreign pawn-office,
complained of in the petition, proved a failure, and had to
close its portals owing to the opposition of natives inter-
ested, although at that time, 1888, there were twenty-one
pawn-offices of the first and second class doing a flourish-
ing business in the foreign settlements of Shanghai alone,
and there were five times that number of Yah carrying on
trade in the settlements and native city.

The importance of the Tang Po Tien and the Chi Tien
is evidenced by the fact that they cannot refuse govern-
ment deposits although they are not actually banks.

The Tang Po Tien owners must be responsible parties,
merchants of known standing and financial ability, bank-
ers, or even officials without substantive rank, although
those holding substantive posts do engage, illegally, in such
trade. The owners cannot refuse to advance money to
any amount on reliable security, generally giving sixty-
five to seventy-five per cent of the value of such security
as the pawning limit. The security remains on deposit,
until redeemed with the required interest, and cannot be
sold under a period of eighteen months from date of loan,
and by mutual consent the period of redemption may go
on for three years. The Tang Po Tien do not remain open
after sundown. Each director has a key to one of the
numerous successive doors leading to the strong room,
where valuable portable goods, such as pearls, precious
stones, gold ornaments, etc., are stored, which cannot,
therefore, be opened by one of their number without the
consent or knowledge of the other owners. The class of
goods the Tang Po Tien lends on are : (1) the official

BUSINESS CIJSTOBCS 267

pawnings of taxes and their collection previously de-
scribed; (2) standing crops of all unperishable produce,
such as rice, millet, com, cotton, tea, etc. ; (3) land
revenues; (4) house rentals; (5) bona fide shop accounts,
shop fittings, shop merchandise, a servant of the pawn-
shop being placed during the period of the pawning in
the merchant's shop to see that all returns are properly
noted and nothing illegally disposed of ; (6) possessions
of private people and officials, such as furs and other wear-
ing apparel, personal and household ornaments, etc.

The Chi Tien is practically on the same legal footing
with the Tang Po Tien^ but can refuse to lend large
amounts, except to central or provincial government offi-
cials. They lend to high-class customers, but only on
tangible or movable security, such as merchandise, espe-
cially piece-goods, wearing apparel, and household or per-
sonsd ornaments, and any articles of such character.

The trade of pawnshops is injuriously affected by all the
legal restrictions regarding the sale of pawned articles, by
the depreciation, or the fragile nature of the articles
pawned, and by the risk of fire. The proprietor is liable
for the full value of the article should it be burned by a
fire having broken out in the pawnshop, and half the
value if the fire originated in a neighbouring house.

From the nature of the business of a first-class or second-
class pawn-office, it will be seen that the proprietors must
be wealthy men, or have wealthy backing. In fact, pro-
prietors of pawnshops are at the same time proprietors of
native banks, or large grain merchants, or salt merchants,
and though their separate undertakings are officially
worked separately, they in reality work cooperatively and
assist one another out of difficulties temporary in their
nature.

This association of banks with pawn-offices enables the

258 CHINA IK LAW AND COMMERCE

latter to accept the larger government deposits, which
would otherwise be too risky in bad times, — the times
when the government usually finds it difficult to secure
other and more remunerative places for investing the sur-
plus of the exchequer.

A pawn-office is one of the best places to get money
changed in China ; standard gold will always get its full
value of silver or copper cash, as the changer requires,
and the money is always good, no bad or small cash being
allowed within the Tang Po Tien or Chi Tien. One finds
in travelling that it is most convenient to deposit money
in a pawn-office and get notes or letters of credit to high-
class pawn-offices in prefectural and magisterial towns in
the interior, and there draw, as it is certain that every shoe
of eycee and every copper cash obtained in this way is
genuine. Further, this gives an introduction to the pawn-
office owners who, as previously stated, are generally
wealthy men, if not the wealthiest in the neighbourhood,
and are accordingly among the best people for the travel-
ler to meet. Frequently their large, clean, and comfort-
able dwelling-houses, at the rear of the pawn-office, within
the same high- walled and embattled compound, are put at
the disposal of a traveller as long as he remains in that
town. When he leaves they will undertake the trouble
of securing baggage-carts and fixing the rates at which
goods are to be carried, that is to say, the daily hire of the
carts required, so that one should not be unduly squeezed.
By them cards and letters of introduction are given to
merchants and bankers in other towns, who, in the letters,
have been told to provide, as far as possible, all comforts
and the information required.

The impression created by the pawn-office proprietors
is that they are a highly respectable class in the commu-
nity, and as business men in a business country, among the
soundest.

BUSINESS CUSTOMS 259

Many of the things found in a pawn-office, such as furs
and wearing apparel, are simply there for safe-keeping
and storage, as all these articles must be examined by the
proprietors or their staff, from time to time, to see that
they are not getting damaged by dirt, damp, or moths.
The staff of a pawn-office are generally well armed, one
or two of their number doing duty all night, by turns,
on the walls, which are high and strong and loopholed.
The doors, which are thick, are further protected with
well-secured, thick, wooden railings. Such precautions are
necessary, because the valuable nature of the goods stored
within might incite burglars and bandits to try their luck
at housebreaking.

These pawnshops are generally the finest and most
imposing buildings in a Chinese town, and the stranger
passing through cannot fail to observe the contrast be-
tween theirs massive structure and the structure of other
hou^es-or mer^ntile shops or stores.
(^Bargain Mon^y. — What is it? Nothing but the custom
orthe country, and as custom it must continue. Almost
as important in business as the go-between, and permeat-
ing the whole structure on which Chinese commerce has
been built up, is the use of bargain money. The absolute
necessity for the payment of what is called bargain money,
when the fulfilment of a contract is one of the great vir-
tues of the Chinese, proves to be one of those extraordi-
nary contradictions which go toward making the study of
this people one of the most interesting and at the same
time most baffling that man can set himself. Gillespie
found that with the Chinese, ^^ Genius and originality are
regarded as hostile and incompatible elements ; '* so in
business we find that bargain money is absolutely neces-
sary where custom, position, and prestige already compel
the fulfilment of a contract.

260 CHINA IK LAW AKD COMMERCE

Those who do business in China need no interpretation
of the working of the sj'^stem called bargain money. It is
a system as well as a custom, worked most systematically,
and is fixed at regular percentages on the amount of capital
at stake in a business deal. Once bargain money has been
paid, there is no going back by either of the principals,
the handing of it from one side to the other being by cus-
tom supposed to clinch all talk on the basis of what has
been discussed before. If the vendor should endeavour to
go back on the bargain, he loses his bargain money.

The bargain-money system permeates the whole com-
mercial life of China, and though insisted upon now by
manufacturers or any one vending commodities, land, etc.,
grew out of the custom that any citizen who wished work,
or anything else put through in a hurry, paid what might
be termed a retaining fee, or first option money. Bargain
money is strongly objected to by the newcomer on his
first dealings with the Chinese, until he finds that practi-
cally no business can be done without it. The advantage
of bargain money to the vendor of labour, work, or goods is
very great, as he has, then, just so much capital on which
to draw interest until delivery has been made and taken.

By the paying of bargain money the vendee is assured
of the work's being done, and of his having to accept de-
livery, if it should fulfil all conditions of the agreement,
under penalty of losing all the money handed over as
bargain money. Bargain money corresponds very much
to the early English ** luck-penny,'^ only it changes hands
before delivery of goods, and the luck-penny is a rebate
on conclusion of a sale; but, as indicating that both parties
are satisfied with the bargain, the two systems are identical
iiridea.

^JPurcJuuing Agents. — A native custom which has grown
out of the limited number of treaty ports in China is that

BUSINESS CUSTOMS 261

of the ^^ purchasing agent.'' In a foreign country he
would be called a wholesale buyer, except that in foreign
countries such a buyer would be granted discretionary
power to buy articles which he considered would have a
fair sale in his town and bring in reasonable profit to his
employer. On the other hand the purchasing agent comes
down to Shanghai, or some other treaty port, with a
limited number of orders for particular goods which are
already the staple stock of the various houses up country.
The orders being completed in Shanghai, the agent sets
about having a good time in a tea shop or opium den, thus
whiling away the time until he can catch a return boat.
There is no central place where he can see any new foreign
imports on exhibit. The conservative habits of the foreign
import houses too often teach the worthies therein that it
is beneath their dignity to push business by showing any-
thing that has not been asked for ; therefore, under present
conditions, it is difficult for consular officials to try to
open up new markets.

Such is the natural curiosity of the Chinese that, if they
can see and examine things for nothing, they will spend
hours learning every detail of a subject which attracts
their interest. Were full advantage taken of these char-
acteristics of the Chinese by having a large exhibition hall
in each of the larger treaty ports, and particularly in
Shanghai, where the Chinese could see foreign products,
and foreigners could see Chinese products, the mutual
benefit would soon be apparent in the general advance of
trade. As nothing fascinates the Chinese mind more than
the intricacies of machinery, those who visited a machinery
hall would soon learn all the working of a machine and
its particular uses, and as no one can compete with the
Chinese as a gossipmonger, most of the machinery seen
would secure cheap advertisement.

262 CHINA IN LAW AND COMMEBCB

The Japanese see the use of exhibiting in China; but,
having no exhibition hall, they have to adopt a more ex-
pensive method of advertising, and they scatter broadcast
through the country free samples, with detailed descrip-
tions of the commodity printed in native characters that
the natives can read, and not in English, which natives do
not understand.

Fast on the heels of the sample distributer comes the
Japanese commercial traveller, and orders are booked on
all sides in accordance with the sample that appealed to
the native Chinese. That business follows in the tracks
of such a systematic pushing of trade is proved by the fact
that the Japanese trade with China has increased in the
decadal period ending 1902 from 1.1270 to 14.70 of the
total clearage at the Chinese ports. In the same period
the United States trade rose from 0.9770 to 1.70 of the
total clearage, while the trade of Great Britain received
Irish promotion from 62.1970 to 50.70 of the total clear-
age. But then the merchants and manufacturers of Great
Britain and the United States of America appear to con-
sider that the methods which suit their insular or local
trade development are too grand and great to attempt
in a country which offers over 400,000,000 possible pur-
chasers. In the overstocked market of Europe and
America it pays to push trade, but in China, with the
aforementioned population, it would seem, the greatest
producers in the world consider that demands for goods
had better come from the market, although the market
does not know the products of the producer.

I may here quote from the report of H.B.M. Commer-
cial Attache in China: *^The Indian export trade was
built up by collecting agents in every town throughout
the peninsula. Railway stations and the amended inland
navigation rules should facilitate a similar method of pro*
cedure in China."

BUSINESS CUSTOMS 268

The business of the big houses in the treaty ports has
become too fossilized and a matter of routine. The heads
of these firms or agencies carry on a criminal strangula-
tion of the trade of the home producer whom they repre-
sent by considering that every new demand or change in
old custom is a decided bore, and that any attempt on the
part of juniors to instil energy or bring about change
must be crushed if possible. Often is the energetic new-
comer who, astonished at commercial stagnation, suggests
new methods of increasing turnover, met with the sar-
castic remark, ^^You, who are here for a few months,
wish to teach me my business, who have been here
for years." This crushes in the bud the natural business
proclivity of the Anglo-Saxon, and the youth falls into
the beaten groove of his senile business superior, and
the principles of commercial progress are completely left
but of sight. Certainly there is foundation for this
arraignment.

A great deal of this comes from the fact that the foreign
houses in the treaty ports of China are agents for several
firms, and will not push a particular line of goods lest it
should interfere with the goods of another agency which
they hold. Some of these firms have come to be known
as '^ ten per centers," the phrase indicating their commis-
sion as agents and managers of various undertakings, but
it might just as well be applied to the amount of energy
they expend on the advancement of trade. On the other
hand, there are a few, very few, enlightened tipans or
managers, who break away from tradition and routine,
and are gaining a daily increasing clientile^ attracted by
the variety of goods exhibited, and by the vigour of those
acting under these more energetic tipans who make a
study, in their spare time, of the customs and needs of the
people of the country.

264 CHINA IK LAW AND GOMMERCB

Mutual understanding is the mainspring of commerce
amongst the Chinese themselves, and the sooner it is incul-
cated into the dealings of foreigners with Chinese, the
sooner one may look for the spread of commercial rela-
tions.

FSngahui. — In the business life of the Chinese fSngshui
is as important a feature of business as the go-between.
Though foreigners may laugh at the firm belief of the
Chinese in this pseudo-commercial science, it is to be
found under various names and conditions among the peas-
ants of all nations. In China, from the Emperor to the
rag-covered beggar and cripple, there is an implicit belief
in the geomantic superstition concerning the grave of a
deceased ancestor and its effect upon the present and
future generations.

Many of the higher officials and scholars of China claim
a knowledge amounting to prof essorial distinction in fSng-
shui. They claim to be able, from the bend of a tree, the
slope of a hill, the curve of a river, to divine the sub-
terranean currents known to Chinese geomancy as the
"green dragon" and "white tiger," and the celestial
current or course of the spirit known as "the heaven
fox." Such a knowledge is sufficient stock-in-hand to
insure a profitable business to the purveyor of spirit
fortune.

The fSfiffshui trade was confined to the priests until the
thirteenth century, when scholars began to make use of
the commercial side of the belief, so that by purveying this
commodity they could afford to continue their studies.
The artful reactionary or revolutionary makes great use
of fSngshui in getting his first influence over the minds of
the people. It is the course of the " green dragon " or
" white tiger " which decides for, or against, a local dis-
turbance. Dyer Ball gives an excellent instance of the

BUSINESS CUSTOMS 265

influence oif Stiff shut on disturbances. ^' When two build-
ings are beside one another, the one on the left is said to
be built on the ' green dragon,' and the one on the right
on the * white tiger.' Now the tiger must not be higher
than the dragon, or death or bad luck will result." This
accounts for the number of single-story houses to be
found in town, village, and country hamlet throughout
China, and for the unnecessary spreading of Chinese
houses over a large area, thereby taking gradually away
from cultivated lands, and reducing the amount paying
producer tax to the government. Besides this, it is the
cause of many of the misunderstandings which so fre-
quently arise between the foreigner resident in the in-
terior of China and the natives. If, therefore, the
foreigner wishes to have a house of two or three stories
without the risk of trouble, he must seem to pander
to fSnffshuiy and build up his left or right hand neigh-
bour's house to a height equal to that of his own; no
matter whether his house be on the "tiger" or "dragon,"
the natives will fancy his is on the " tiger." Thus is super-
stition made a trade. We continually come across /<$n^-
shui in the modernizing of China's methods of business
communications, such as railways, river steamers, telegraph
lines, etc.

No railway must run sufficiently near the grave or
lucky mountain pass in China, or it may disturb and
scare away the luck spirits of fSngshui. For the same
reason no steamboat must whistle near a lucky bend of
the river, or near graveyards, and no telegraph pole must
enable the electric current to kill the spirits in the vicinity
of the graves. None of these difficulties will be found to
exist if sufficient money be distributed in the right direc-
tions, as to local officials, heads of villages, or the owners
of the land endowed with good fingnhui.

A

266 CHIKA IN LAW AKD COMMBBOB

The fSngnhui caDt is an excellent one for obstructive
officials who do not desire foreign innovations. As
previously stated, there is nothing that cannot be done
in China by the foreigner if he considers it worth his
while to conciliate the local interests. The influence of
fSngshui in any direction can be overcome by a judicious
foreigner engaged in business relations with the natives.

That the commercial side of fingshui does not hit the
foreigner alone is illustrated by the fact that if there is
an epidemic of any kind of sickness in a locality near to
which a rich man has built a tomb or house, the inhabit-
ants of the district attribute the misfortune to him. He
must restore fSTigshui to the district or pay heavy com-
pensation to the neighbours, particularly to geomancers
and priests.

In the neighbourhood of the treaty ports /(^fi^a^ut is not
so much felt by the foreigners, and a small squeeze can
get a grave removed without any trouble from the parties
interested. In the interior the greatest rowdies are the
lo^jdeSTupSpMers ot fSngshui.

^ Compradawes and Shroffs. — In foreign commercial inter-
c6^rsejptn the Chinese two native individuals must be
reckoned as part of the establishment. The more im-
portant one is the eampradore^ and the lesser is the shroff.
They and their duties are quite distinct. The shroff is
really a petty cash receiver. As it is not considered dig-
nified for the ttjpan, or foreign head of the firm, to have
cash dealings with any one, he must employ a shroff.
The old cornpradore was a very different man from the
compradore of to-day. Forty years ago the cornpradore
was, part interpreter and part go-between in dealings
between foreign merchants and native traders. 'He was
always the servant of the hong^ or merchant firmr ^To^
day he is the master, and, as his agency, the foreign trad-

BU9INBSS CUSTOMS 267

ing firm is tolerated as a matter of convenience. The
compradore of modern times is generally a rich Cantonese
merchai iCpwho could withnlig' greatest ease, in man y
case8a_.buy.Qut tha foreign firm which nominally employs
him. He is a member of every guild that has anything
to do with the goods imported or exported by the foreign
shipper with whom he deigns to work. The result is
that the natural enterprise in a young firm is killed by
the compradore when it suits him, and thus is trade
cramped.

The necessity for compradores came about in bygone
years, and the practice has continued to this day, owing
to the fact that the foreign employees of foreign firms
have never learned, and have never been encouraged to
learn, the native official or dialectic language, while the
compradore is generally a good scholar in the particular
language of the tipan. The idea of employing a compra-
dore under the circumstances would seem to be moving
along the lines of least resistance, but that is more in the
seeming than in the fact. Through the ignorance of the
Chinese language and customs displayed by employees of
European and American firms enormous power of resist-
ance is placed in the hands of the Chinese, through the
compradores^ who must obey the dictates of the guilds as
against those of the employers.

Owing to the power the compradore class now wields,
there is no remedy for this system, and -tim^^juimpTf^dores
must be permitted to run the foreigner's business to suit
their own convenience. On occasion one has undoubtedly
through self-interest been of momentous advantage to the
foreign firm with whom his name is associated. He
would *^ lose face " among his own countrymen if the firm
broke, and as he can generally command considerable
sums, it suits him on occasion to come to the rescue with

.i

268 CHINA IK LAW AND COMMBBOK

his purse and credit. The crisis over, however, he gener-
ally gets his own back with much more interest than that
of which the firm has any cognizance.

Though the shroff is not accountant or cashier, he looks
after loose cash, the collecting of accounts, local rates of ex-
change, individual credit, and in fact runs a general utility
business in the petty cash department. All this kind of
business suits the quickness of the Chinese, and he is most
useful to his employer in this respect. There is, however,
an objection to his position also. The employment of
shroffs tends to extravagance among the juniors in
the firm. They borrow continually from him and are
thus monthly running beyond their incomes, and lose all
sense of personal responsibility, besides losing prestige
or "face."

The foregoing shows the abuses of the comprcutore sys-
tem, but there is a converse to this aspect. His knowledge
of the general trend of politics in the different parts of the
Empire and the effect thereof on his employer's trade is
extensive. There is no large merchant in the interior
^bout whom he does not know something, or concerning
whom he cannot on the shortest notice obtain infonnation.
He is a walking encyclopaedia of industrial, commercial,
political, and financial information. On many occasions
he saves his employer from transactions with silk-robed,
smooth-tongued Chinese merchants whose stability as mer-
chants is more than doubtful. If a Chinese compradore
could be made to dictate to a writer or to write himself a
history of his experiences, it would be one of the most
interesting volumes on China that could fall into the hands
of the foreign merchants or those interested in Chinese
bu^ness customs.

Obop^ ^The word " chop " is used by foreigners with
somewhat different meanings, as in general speech it

BUSINESS CUSTOMS 269

includes not only the stamps affixed by Chinese to their
contracts, but bank orders, tlie trade-marks printed on
goods, and hence even classes of goods ; but strictly
speaking the word ** chop '' denotes the stamp of a firm or
individual.

Such chops are made of hard wood, and are carved with
the characters of the owner and some fancy design to dis-
tinguish them. In order to use them they are dabbed
into a thick paste of red paint, and, on Chinese paper at
any rate, they leave a clear, permanent imprint easily
recognized by all Chinese, and in many ways more con-
venient than the obscure signatures which many foreigners
affix. The Chinese call this class of chop ^^ to cho^*' and
it varies in shape, design, and size according to the taste
of the owner. Firms and tipaos generally use rectangu-
lar or oblong chops, while private individuals seem to
prefer them round or oval.

Chinese firms generally use at least two different chops,
one being employed for stamping chit books and receipts,
and another or several others for contracts and formal
documents.

The custody and use of the firm's formal chop is of
course a matter of great importance, and according to the
general practice only the manager and accountant have
control over the chops. This is intended to prevent any
partner from using the firm chop for his private business
or for giving a guarantee in the firm's name. In a
Chinese firm the partners have, as a rule, little to do with
the conduct of the business, and instead of any one part-
ner's being entitled to bind the firm, as in the case of Eng-
lish and American partnership, the manager and no one
else is the person who has this power ; and consequently
he is the person to keep the chop, though he sometimes
shares this duty with the accountant.

270 CHINA IK LAW AND COHMJSBGE

The method of keeping and using chops was much dis-
cussed in the case of Yu-Foo-Chee v. Evans and Company
(November, 1901), and a Chinese witness described the
practice in his office as follows : All the important chops
are kept in a safe, the key to which is kept by the mana-
ger or proprietor of the hang, A small chop marked with
the characters of the hong name is used for taking deliv-
eries of orders and in receipting letters, and this chop is
kept on the writing-table. The chop which would be
used for contracts would always be kept locked up in
the safe in the manager's office. The small chop would
be used for chit books and sometimes for customs passes.
And another witness stated that the large chops were kept
in a safe, the key of which was kept by the accountant, but
that this key could not be used without the consent of
the manager, though the accountant could obtain the chop,
if he wished to, while the manager was absent ; and it was
further stated that the chops were never allowed to be
taken out of the office.

When a firm's chop has been affixed to a document, all
persons are entitled to assume that it was put on by a
person entitled to affix it, and although the characters
for the firm's name are added in writing in certain cases,
the chop in itself is sufficient to bin4 the firm without any
signature or written characters.

If a chop were stolen and fraudulently affixed to a docu-
ment, it would of course be for the owner of the chop to
set up this defence and disclaim responsibility on the same
grounds on which a foreigner would repudiate a forged
signature. And it is in such a case as this that the draw-
backs to the use of chops, as distinguished from signa-
tures, become apparent.

A forged signature must always be slightly different
from the genuine signature, however clever the forgery be.

BUSINESS CUSTOMS 271

Consequently the principle of negligence can be applied
in cases where two innocent people have suffered at the
hands of a forger. For example, if we take the case of a
forged mortgage deed, on which an innocent person ad-
vanced money, or a forged check innocently paid by the
bank on which it was drawn, — in both such cases the per-
son whose signature was forged can well say that a little
more care would have distinguished the true from the false
signature. But with a chop it is different ; if the chop is
improperly used, the holder of the chopped document has
a genuine stamp, but one affixed by an unauthorized per-
son ; and it will be for the owner of the chop to prove
that there was no negligence on his part in allowing the
chop to be so used or to be stolen.

No definite rules can be laid down to determine the
responsibility of owners of chops whose chops have been
used wrongfully, and consequently it is desirable in docu-
ments of importance, such as guarantees, mortgages, and
such like, to insist on both the chop and the signature of
the person affixing it. The name is always written first
and the chop affixed afterward, either over the written
signature or at the foot or at the side of it ; and this, of
course, applies whether the document is entered into by a
firm or a private individual.

The tipao^s chop is one of the chops which concerns
foreigners when they are buying land. According to
Chinese practice the tipao*9 chop is absolutely essential to
the validity of bills of sale, perpetual leases, and such
like documents relating to the transfer of land. The
system is an excellent one and goes far to prevent fraudu-
lent sales, for the ttjpoo, as village elder, is, in most cases,
well acquainted with the parties and with the ownership
of the land.

A sale of land is generally a matter of great formality.

272 CHINA IN LAW AND COMMEBGE

The bill of sale is brought to the tipao^ and the other
parties with their middlemen attend, bringing the fang-
tana or other documents of title and the money to be paid.
The document is signed by the vendor and the middle-
men in the tipao*8 presence, and he sees the money handed
over ; and not till then does he affix his chop.

The tipao holds office for one year only, and the chop
is altered every year, so that it is easy to see at a glance
what particular tipcu) has chopped a document. Formerly
tipaos used to keep their chops after their year of office
had expired, but it was found that this led to the fraudu-
lent use of old chops, and according to present practice
these have to be given up.

Another chop which interests foreigners is that of the
compradore. Every foreign hong is of course known to the
Chinese under a Chinese name, and the compradore has this
name on his chops. The use which a compradore is entitled
to make of these chops has been the cause of much litiga-
tion, and the leading case on the subject is that of David
Sassoon Sons and Company v. Wong Gan Ying, heard
in the British Supreme Court on appeal from Tientsin
in November, 1884. In this case a Chinese hong sold
to the compradore of Messrs. Sassoon certain gold, and the
compradore gave the Chinese hxmg receipts stamped with
the chop bearing the characters for the Chinese name of
Messrs. Sassoon's firm.

Mr. Henderson, who sat as one of the assessors on the
trial in Tientsin, has put on record an interesting state-
ment of the course of business of compradorea. He says
that it is well known that compradorea trade largely on
their own account and use the seals or chops of their
foreign employers for their private business chits; such
chops are used also for business receipts and agreements.
He says that he never knew or heard of a compradore in

BUSINESS CUSTOMS 273

foreign employ using a separate stamp or seal from
that of his foreign employers, even for his own busi-
ness.

Messrs. Sassoon contended that they had never author-
ized the use of the chop for the stamping of the receipts
in question, which related to a private business transac-
tion of the eampradore. But Sir Richard Rennie, holding
that if principals authorize the use of a chop by the com-
pradorey it is just as good as a signature, decided that
the receipts stamped with chops bearing Messrs. Sassoon's
Chinese name were sufficient to justify the sellers of the
gold in thinking that they were dealing with Messrs.
Sassoon and in giving credit to them, and not to the com-
pradore ; and consequently held that Messrs. Sassoon
were bound by such receipts and liable to the sellers
thereunder.

Until this case is overruled British merchants must
realize that in allowing their eompradores to use chops
bearing the names of their employers, they are liable for
the abuse by their compradore of such chops to Chinese
who believe they are dealing with the foreign employer.
But the hardship is not unfair, considering that the
foreign employer can exercise his discretion in selecting
his compradore and in obtaining proper guarantees for his
honesty.

The chop or seal which appears on fangtwM^ proclama-
tions, and such like is strictly speaking an official seal.
That used for fangtan» is called Tin, and is a seal made
of metal and only used by high officials. The seal used
for proclamations and government documents is called
Kwan Pang or Keen, Kee^ and in certain cases purple ink
is used instead of the usual vermilion.

Another stamp which is often called a chop is the Wei
Wha^ or stamp on native bank orders, to signify that the

274 CHINA IN LAW AND COMMEBOE

paying bank will have a day's grace within which to pay
the cash. That is to say that they will not be required
to pay until the day after the order became due. This
Wei Wha chop is an introduction of recent years and has
been the subject of considerable correspondence between
the foreign merchants and the native bankers.

CHAPTER XI

BANKS

T he figst natio nal bapk o f Chi na owea ita origin to an
imperial edict_ which was issued iu^thfi-jeac 1898. The
edict provided that the bank should have its headquarters
at Shanghai and that the rules for its government should
be similar to those by which European banks were gov-
erned. In all the centuries of China's history there had
never been such an institution as a national bank recog-
nized by an imperial edict. Nowhere within the borders
of the Empire did such an institution exist. But now
there is an imperial bank not only at Shanghai, but also
at Tientsin and at Hankow, and probably there will soon be
similar banks in all the principal ports of China. If the
central government had the confidence of the native mer-
chants, the imperial bank might prove a formidable rival
to the foreign banks doing business in China, but that
confidence is not given to the extent of any assured basis
of success.

What I intend to write about, however, in this chapter
is the system of native banking, which the Chinese origi-
nated before banking was known in western countries,
and which has answered their business needs.

When a Chinaman wishes to engage in banking, he
should first be sure that his financial standing is good
among his neighbours, and that he has sufficient capital to
ensure reasonable success. When satisfied as to these two
requisites, he may then select a suitable house and hang

976

276 CHINA IN LAW AND COMMEBOE

out his sign, on which he announces his business to the
public. He may be alone, or he may have associates, and
the latter is more the custom. There is no necessity for
petitioning to any official authority for permission, and no
charter is required. Thus it appears that no business
could be entered upon more simply in China than
banking.

I have before me a pamphlet devoted exclusively to
Chinese currency and banking, by Wong Kai-Kah, and as
I have not read a clearer and simpler exposition of the
native system of banking in China, I make the following
quotation from it : —

^^ The smallest business done in a purely financial line
is that of the money-changer, who starts business with a
thousand or a few hundred dollars, the greater part ot
which consists of small coins. He hires one side of a
shop, provides himself with a chest, a small counter, and
a few books. These money-changers are found in every
street at certain intervals. Their sign-board, with the
word ^Money-Changer,' is conspicuously hung out, and
pasted against the window of their shop is a bill in-
forming the public of the value of a dollar in cash or
small coins, according to the daily local rate. This rate
is fixed by the money-changers' guild, which in turn is
governed by the guild of bankers, who, more than the
authorities, control the local money-market. The money
changers make about five cents for changing a dollar into
cash, and if you take the same amount of cash to another
money-changer to get a dollar, you will have to pay him
five cents for premium. In case of a British or American
sailor, the victim pays a little more, but the jolly jack,
bent on a good time, seems never to mind an extra cent
or two.

** The capital of the local banks ranges from 10,000 taels

BANKS 277

upward. They are found in all large towns and cities,
some of them paying interest on deposits, and all are sub-
ject to the full amount of their liabilities, the word * lim-
ited ' having never been employed as a safeguard, as they
think that to limit their capital or liabilities would only
destroy their financial standing. The more important
banks may be divided, for convenience of treatment, into
three classes, viz. : banks in Chinese cities; banks in
Hongkong and foreign settlements ; banks which are
organized on the modern foreign system.

^^ The typical native bank in any Chinese city, unlike
the palatial banking-houses of Europe and America, has a
very common-looking appearance. It has no iron vaults
or strongly built stone basement against fire, though great
precaution is exercised against robbery. I suppose this is
because banks are not required by law to keep on hand a
large deposit as security against the issuing of notes.
They are entirely local enterprises for the facility of mer-
chants and traders, and receive deposits for which they
pay from five to eight per cent per annum^ the rate vary-
ing according to the condition of the money-market at the
time of deposit, and the number of months the money is
to be deposited, the shortest period being six months.
There is, however, some latitude in drawing deposits from
a bank. Suppose I deposited $500 for six months in a
well-known bank, with which I do considerable business.
If four months after my deposit I have an urgent bill to
pay, I ask the bank to accommodate me, which it generally
does, provided I pay, say, three months* interest. In this
way the bank makes a small gain, while the depositor is
saved from embarrassment. The bank invariably gives
the depositor a receipt on which is specified whether the
money is to be drawn by the depositor himself or simply
by the bearer. The amount of interest is also put down

278 CHINA IK LAW AKD GOMMBBGE

and the date. In case the depositor is to draw the money,
no other person will be given the money under any cir-
cumstances, and in case of mistake the bank bears all
losses. But if the receipt specifies that the money may be
drawn by the bearer, any one, even a thief who had stolen
the document, may draw the money, the depositor being
the loser. In case the receipt is burned or stolen, the
depositor must give timely notice and bring to the bank
a reliable and trustworthy person to testify to his words
and become surety. When the bank is satisfied, a new
receipt is made out, the lost one being no more valid.
The depositor is also given an interest book, marked with
the stamp and signature of the bankers. With this book
the depositor may draw his interest by the month or by
the quarter, as agreed upon between the parties. The
local banks sometimes issue a limited amount of notes,
but these have no wide circulation unless the bank has an
old standing and is in a strong financial position. This
status of a bank is ascertained by * watchers,' who are
employed by banks and commercial houses, and whose
sole business is to make daily visits to the banks and
closely observe their dealings and financial conditions.
Bank notes or promissory bills are issued only by leading
bankers in a city, varying in value from 50 cents to
$1000, and supplying many advantages, with but very
little danger. The blue, black, and red colours, which are
blended together with many private signatures and fan-
ciful indorsings on these bills, give them a rather gay
appearance. The name of the issuing house and the
characters or words, traced around the face in bright blue
ink, form the original impression. The date of issue and
some ingeniously wrought cipher, device, or monogram,
and the spaces marked for the reception of signatures and
certain mystic or secret marks for the prevention of for-

BANKS 279

geries, are of deep red. The entry of the sum, the names
of the partners and cashiers, stand forth in large black
characters. On the back are the indorsements of various
individuals through whose hands the note has passed, in
order to trace the course of the note and facilitate the
detection of forgery. The indorsers of these notes are
not, however, liable or responsible for any irregularities.
These notes are not regarded as legal tender, but accepted
on good business faith, and redeemable in silver dollars or
copper cash on presentation. The issuing of these notes
enables the bankers to divert their capital for other legiti-
mate business, and may thus increase their eamingfs. For
their own interest bankers do not issue of these notes more
than they can readily redeem in case of a rush, which
often happens when some rival house or an evil person
spreads the rumour that a bank is not in a firm position.

^^New banks whose credit is not considered well es-
tablished by the commercial community never attempt to
issue such notes, because they will never be accepted by
the public. Age and long-standing reputation mean
everything to the Chinese merchant.

" There are various ways of making money for the
native banks. If they are agents of some provincial
banks, they discount bills. They often deal in bills of
exchange, acting as agents of Chinese banks in Hong-
kong, Macao, or Shanghai, where bills may come from
emigrants residing in the United States, Australia, or
other foreign countries. They receive deposits, which are
lent out to merchants at a good profit. In lending out
their money they ascertain by their watchers the business
standing, character, and financial position of the applicant,
and if they are satisfied, the money is loaned on good
personal security, which is nothing more than business
faith. The applicant, of course, refers the bankers to some

280 CHINA IK LAW AND COMMSRCS

reliable business men, who act as security, usually receiv-
ing something for their trouble and risk, for, if the
applicant fails to pay the loan, the security has to be
responsible for the whole debt.

*' There is a saying in China that a man will be com-
paratively happy if he is not a witness or a surety in
any case. It seldom happens that a loan is secured on
mortgages of real estate, though goods and merchandise
may be handed gver to the banker, who will advance
the money. In Shantung, Szechuan, and other places,
bankers have large go-downs, in which they stow grain,
bees' wax, medicinal herbs, and other stuff, deposited as
security by their customers. They also make a large
profit by the handling of silver. In receiving silver dollars
by weight for payment they require the clean dollar,
which must not be marked by ink, or vermilion, but in
paying out they stamp it with their own mark, with ink
on one side and vermilion on the other. They warrant
the coin to be good as long as their mark is on it, but in
case their mark ia obliterated they will not be responsible.
The difference in weight of the coin becomes their profit.
When the foreign trade was concentrated in Canton, one
bank made $100,000 in one year from this source alone.
Many banks have a 8f/eee mint of their own for the coining
of silver * shoes' or lumps. All the Mexican dollars that
have been either chopped, or clipped, or have no standard
ring in them, are melted and cast into 8f/cee8 of five, ten, or
fifty taels. On these ^shoes' of silver the names of the
bankers and workmen and the date are stamped, the firm
issuing the silver being held responsible for any irregular-
ity. The way bankers make a profit from their mint is
as follows : they buy from brokers whose business is to
purchase silver dollars of a low standard, or not passable
at the full rate, from shops and money-changers. These

BANKS 281

dollars are bought at a price far below the value of the
silver in theiu, the brokers, by their experience and train-
ing, being able to judge with great accuracy the market
value of such coins.. The brokers sell these suspicious
dollars to the bankers at a small profit, and the bankers
in turn melt the coins down, and extract the pure silver,
which is cast into ^ shoes ' of sycee. The banker's margin
of profit is the real value of the silver extracted from a
dollar above the price he paid for it.

^^ The Chinese banks which do business in the foreign
settlements, such as Hongkong, Shanghai, Tientsin, and
other places, differ from banks in purely Chinese cities in
only one respect, which is, that they do business much more
on real estate security than they do on personal security.
This adoption of real estate securities in the foreign settle-
ments is a means of safeguarding the banker's own in-
terests, because it often happens that in a lawsuit heard
in the consular or in the mixed court, a personal security,
with nothing more than a record of the transaction in
their books, is in many cases not considered sufficient
evidence. Being made wiser by foreigners and western
methods of business, they have thus been obliged to
demand solid securities beyond the standing and reputa-
tion of those who negotiate for loans. Technicalities of
western law rather puzzle the mind of Chinese merchants,
so that in large and important transactions a European
lawyer is generally employed to draw up the deeds.
Money is lent on mortgages, and bankers will accept bills
of lading or receipts from foreign firms through whom
the borrower has ordered goods, such bills or receipts in
these cases being invariably indorsed by some shipping
firm or business house. These banks do a large business
among the Chinese merchants of the treaty ports, and
even with foreign countries, from which their Chinese

282 CHINA IN LAW AND COMMERCE

agents will remit the money sent by emigrants to the
interior of China. In these latter instances the banks
make something by the exchange, and the depreciation of
silver has somewhat increased the eamingfs of the banks
by remittances and drafts.'*

I do not think that any apology will be considered nec-
essary for the length of the above quotation from Mr.
Wong's pamphlet. Being a native of China and having
been educated at one of the principal American colleges,
he has been able to express in clear English his experience
and knowledge of the banking system of his own country.
My personal acquaintance with him and my own observa-
tions convince me of the accuracy of his exposition.

But there is a peculiarity in oriental life which many,
more or less familiar with it, too often forget. It is that
the occupation of the father is invariably that of the son.
It is this peculiarity which has enabled the inhabitants of
the province of Shansi to monopolize the banking busi-
ness in the large and influential commercial centres of the
Chinese Empire. It appears that for as many as a thou-
sand years the inhabitants of that province have prided
themselves on furnishing the leading bankers, and they^
have done so, for the Shansi bankers are the most numer-
ous and influential who transact their business by purely
native methods. *^ They have worked out among them-
selves a very high commercial morality by a vigorous
domestic discipline."

How the Shansi bankers have maintained, for so long a
period, their high commercial morality and their great
influence in the financial affairs of the Empire, is explained
in the following extract by T. W. Wright of the Imperial
Maritime Customs Service : —

^^ A peculiar feature in the constitution of these banks
is the extraordinary manner in which the employees are

BANKS 283

treated. The bankers themselves, being Shansi men, em-
ploy only natives of that province, and, when possible,
select men out of their own villages. When a man is ap-
pointed to a post at one of the branch offices, his family
is taken charge of by the bank, and held as security for
fidelity and good behaviour. At his post the employee
may send no letter to his family, except an open one
through his master ; he receives no pay or salary of any
kind while away; officials are entertained, clothing is
purchased as required, and sundry expenses are incurred,
and every item is met with the bank's money, the strictest
account being kept of all expenditure on behalf of the
individual. A man holds his appointment for three years,
and then returns to his employer's house, taking with him
the account of the money expended during his term ; he
is duly searched, and the clothing he has purchased under-
goes examination. Should it happen, after examination,
that the accounts, etc., are satisfactory, and the affairs of
the bank have been prospering during the man's tenure of
office, he is handsomely rewarded, and is allowed to join
his family, who are immediately released. If, on the
other hand, business has not prospered under the man's
management, and he has presented an unsatisfactory ac-
count, clothing and everything are retained, and the
family are held in bondage until a suitable fine is paid, or
the man himself may be imprisoned."

The Shansi bankers are not to be considered in connec-
tion with any other class of bankers in China. They are
independent of the average local bankers, and move in a
wholly different sphere of business. Many of the Shansi
banks may be said to enjoy a semi-governmental charac-
ter, in that the money due from the provinces to the cen-
tral government is remitted through those banks. They
are also used as banks of deposit by a large number of

284 CHINA IN LAW AND COMMEBCE

high officials, and in that way keep up a very influential
relation with official China. But the Shansi banks have
another way of keeping in close touch with official China:
they advance money to officials who find it necessary,
as too often happens, to obtain preferment or advance-
ment by paying for it. When such is the case, the Shansi
bankers, who always appear to have an ample supply of
ready money, seldom refuse to extend the desired accom-
modation, but at the same time they protect themselves in
sundry ways.

In one sense, and perhaps the better, these banks asso-
ciate together in a guild of their own which is organized
for mutual protection. The members of the bankers'
guild are usually the heads of the principal banks. They
meet at regular intervals to discuss matters relating to
their business and to formulate lines of policy to be
followed.

The Shansi bankers are not in the habit of making
public the regulations, the close adherence to which has
enabled them not only to win success, but to hold and im-
prove it. A regulation of the Wuhu bankers' guild shows
the power it exercises over members. After having stated
"that many irregularities having recently been discov-
ered, it is desirable to put a stop to them without delay,
the bankers have accordingly drawn up, and sworn to
abide by, the following rules and penalties for infringe-
ment," the regulations proceed : —

"1. All bankers when exchanging %yeee into Carolus
or Mexican dollars, must calculate the exchange at the
rate posted on the guild notice-board. Any banker giv-
ing or accepting a different rate will be fined $100.
2. In issuing drafts on Shanghai, the exchange shall
be calculated according to the guild notice-board, and the
time limited to ten days after sight, or to a maximum of

BANKS 285

twelve days from the date of the draft. Any banker giv-
ing or accepting a lower rate or longer time to be fined
9)100." Rules 8 and 4 are of no interest, but the fifth
rule is as follows : —

^^ Every banker must attend at the guild house on the
fifteenth of each month, to decide on the rates of exchange,
interest, etc., and post them on the notice-board. Any
one adopting a different rate to that decided on to be
fined $100. 6. No bankers are allowed to grant favours
by ante-dating or post-dating drafts. Penalty for in-
fringement flOO. 7. Every banker must deposit $100
with the guild, at interest at the rate of three mace per ten
days. If any banker breaks the rules, his deposit will be
forfeited to pay the fine ; if there is no infringement in one
year, the interest will be payable in the first month of the
following year. 8. Any banker who has once been fined
must again deposit with the guild $100. If this amount
is not deposited, the defaulter will be expelled from the
guild and boycotted. Any member of the guild doing
business with a defaulter will be fined $100. 9. Any
person who denounces to the guild a banker who has
infringed the rules shall receive one-half of the fine of
$100, while the other half will go to the funds of the
guild. 10. If, when books are balanced at the end of
the year, it is discovered that any member by underhand
dealing, not covered by any of the foregoing rules, has
caused loss to any other member, the offender's deposit of
$100 shall be forfeited, and he shall be suspended until he
makes good all such losses."

The Shanghai bankers* guild has two branches, and
regulations for each. Those for -the northern branch
read as follows : —

" Dollars. — In paying out new dollars the issuer must
imprint them with his seal (washing out the previous

286 CHINA IN LAW AND GOMMEBGB

imprint), otherwise they shall not be current. Disregard
of this rule entails a penalty. According to former rule,
ten kinds of dollars are uncurrentable — to wit, the light,
dull-coloured, flowery-spotted, dull-sounding, copper-
. alloyed, edges unusual, three stars, circles (?) on the re-
v^erse, head upside down, yellowish hue, white — to which
is added, such as have unusually fine edges.

" Sycee. — Bills from or to f oreig^n banks (and merchants
generally) that accompany boxes of ingots are not to be
altered ; they are to indicate the number, weight, value
in dollars, the premium or discount, all in capitals, not
in running hand ; also the date, the bank by which issued,
and seal, in order to prevent irregularities. New bills
must be out, descriptive of the ingots ; when any are
taken out of the lot, the old one to be cancelled.

'^ The bills accompanying 9ycee that are issued by the
banks of the guild are for outsiders only, and not for
guild banks circulation (those of the northern branch
are at a premium compared with the southern). When
payments from foreign banks to guild banks are in ingots,
a descriptive bill is to accompany them, having first the
seal of the foreign bank, that when found deficient, they
may be returned. When the amount of ingots to be paid
by a foreign bank exceeds fifty (as a rule there are fifty
to a box), the balance is to be paid in notes. When a
guild bank has to pay a foreign bank less than fifty, it
must make out a descriptive bill, and seal it. When
inferior Bycee is paid by a foreign bank, it is to be re-
turned the next day by noon (or if Sunday intervene, on
' Monday).

'^ MtscellaneoTis. — Checks for less denomination than
ten dollars are non-receivable. Guild banks having notes
to be cashed at foreign banks shall present them before
3 P.M., except on Saturdays, when they shall present them

BANKS 287

by 11 A.M. When a foreign bank pays to a guild bank a
round sum in ingots, the latter shall make out a bill for
the balance.''

Those for the southern branch are : —

^^ Interest. — Loans of ingots are to be charged at the
rate of seven mace per diem for a thousand dollars ; the
smaller charge for dollars is in conformity with orders
from the mandarinate. For all checks cashed the sender
is to be charged as under the old rules, — from three to
five mace, for every thousand taels.

^^ Against Speculating, — In buying and selling ingots
and dollars all settlements must be made on the day of
the transaction, — that thereby there shall be no empty
buying and selling. (This rule also is conformable to
magisterial mandate : until its formulation, not long since,
the exchange of the northern branch of Shanghai banks
exhibited the same maddening scenes as those which
occurred among Ningpo bankers, as already described.)

^^ Clearing-house. — Each money-dealer must send his
books to the exchange twice a day, to square accounts,
under the supervision of the manager for the month.

'^When orders are made payable in old dollars, old
dollars are to be furnished ; but when the kind of dollars
is not specified, payment may be made in those in ordinary
use by the bank.

^* These rules, supplementary to the old ones, conduce
to the promotion of business. We unite in establishing
them, and they should be loyally observed ; their infringe-
ment shaU be inquired into, and summarily punished."

It may be repeated in this connection that a traveller
in China should have no difficulty in obtaining all neces-
sary pecuniary accommodation, whether he travels in the
provinces bordering the extreme limits of the Empire or
nearer to the open ports. The system of exchange

288 CHINA IN LAW AND COMMEBGE

between native banks is so perfectly arranged that one
can trayel with a letter of credit in China about as con-
veniently as in Europe or America, and the information
is easily obtainable as to the financial standing of any
bank against which a check may be offered. The banks
for the transmission of money from one part of the Empire
to another are known as exchange banks, and such banks
are almost all controlled by the Shansi bankers.

But these exchange banks do not as a rule receive
deposits from the public. The reason given for that
policy is the fear of damage to their credit. They have
their agents in every important business quarter where
customers are likely to be found, and the duty of these
agents is to inquire and inform themselves fully as to the
business standing of all such, and to gauge accurately their
credit and report it. Sometimes the exchange banks will
receive money on deposit from the government or from
bigh-grade officials, but when this is done, the banks do
not pay more than five or six per cent per annnm^ as it is
regarded more as a favour to the depositor than as an
accommodation to the bank.

Another rule of the exchange banks is not to loan
money on land or houses. Most of their loans are made
to the local banks, and these last advance it in trade on
personal security. Another custom is that the advances
made by a local bank to a merchant are made on personal
security and not against the merchandise.

In some places it is the custom that when a bank fails
to discharge its obligations on the presentation of bills, by
immediately redeeming them, the holder has the right to
seize any property of the bank sufficient in value to pay
his bill, and to take it away with him ; he would not be
liable to prosecution either for theft or for a misde-
meanour. There have been instances of a conspiracy to

BANKS 289

rifle a bank of its contents by the conspirators calling in a
body and presenting their bills with loud outcries and
threatening demands. On one occasion a gang of con-
spirators undertook to plunder a bank, but when it was
learned that they had no money in the bank, and that
their aim was plunder, a vigorous viceroy had their heads
taken off in front of the bank's building.

When a bank is apprehensive that a run is about to be
made on it, and is not fully prepared to meet it, the pre-
caution is taken to make publication that the bank will
^^ hereafter pay.'' When such a publication is made,
custom forbids any interference with the bank. But the
words ^^ hereafter pay" do not mean that the bank is
unable to meet its obligations, but rather are somewhat in
the nature of a plea for time, as the real significance of the
notification is that the bank is able to redeem its bills and
will do so. It further implies that the bank will not issue
any more bills at present, or that it is desirous of closing
up its business.

In China as well as in other countries there are counter-
feiters, and the bills of Chinese banks, although made
with care to prevent their being counterfeited, have not
escaped the skill of such offenders. When proved against
one, counterfeiting is a capital crime ; but it is a common
saying in China that even a thief is not complained of or
molested by his neighbours unless he should steal from
them. Neighbours do not interfere in what does not
personally concern themselves. They aim to live in peace
and free from official interference, and are not going to
intervene in matters that do not involve the good order
of their neighbourhood. A skilful counterfeiter, however,
is managed in a peculiar Chinese fashion. When one is
known to have extraordinary ability as a counterfeiter, he
soon becomes known to the banks. No attempt is made

290 CHINA IN LAW AND COMMBBGE

to have bim arrested, but word b conveyed to Mm tbat if
be will cease bis operations, be may feel confident tbat at
stilted intervals be will promptly receive a certain sum of
money agreed upon. Tbere is customarily tbe additional
stipulation, tbat if tbis bead-master in counterfeiting
sbould bave students under bim to wbom be was teaching
tbe art, a larger sum would be paid upon tbe condition
tbat tbe class was adjourned sine die. Sucb is one way in
wbicb Cbinese banks protect tbemselves. Possibly tbe
lowland Scotchmen borrowed tbe idea wben tbey paid
Rob Roy and secured bis protection for tbeir flocks
against otber Highland marauders. In both instances tbe
remedy is very effective.

Tbe Cbinese bave high regard for promptness in busi-
ness. Tbey are law-abiding and appreciate tbe fact that
successful business demands order and respect for estab-
lished custom. Tbey are merchants by nature and believe
tbat tbe surest foundation of prosperous business is an
orderly state of society.

There are foreign banks at nearly all tbe treaty ports of
China open to foreign trade, and the facility and con-
venience given to business of every description by the
native and foreign banks leave but little to be desired in
the department of banking. Foreign and native mer-
chants bave only to exhibit tbe credentials which entitle
them to confidence, and tbe favour of the banks will
generally be extended.

But the inner system of China's banking must still
remain in many parts a mystery, until foreign intercourse
opens wider the forbidden door. That it is accurately
based and meets tbe necessities of native business, may
safely be inferred from what is known of tbis system.

CHAPTER XII

WEIGHTS, MEASURES, AND CURRENCY

Ik China as in ancient Rome the first coinage was in
bronze, and the reason was similar. In both cases bronze
was the metal of which warlike weapons had long been
made; it was trustworthy, had arrived at a fixed value,
and was convertible. In both cases, before the issue of
bronze as a coin, the actual weapons had served as a me-
dium of exchange, and it was this that had suggested the
issue of the metal itself, with some mark to guarantee its
weight and quality, instead of the weapon \^hich bad al*
ways to be weighed to ascertain its exchangeable value.
There was at first no fixed form ; the metal is to be found
as simple cast drops marked with the weight, and also,
a survival of the original use of weapons themselves, as
imitation swords. As the Romans, originally a pastoral
people, counted their wealth in cattle, they placed on
their earliest coin the emblem of an ox ; the early Chinese,
for whom agriculture had become a religion, with the
like aim of indicating their ideas of wealth, made theirs
sometimes in the shape of a spade, which they called
" spade money " ; the word for money here, in modern
Chinese pi^ being connected with a widely extended
root, from which come equally Latin pretium and Greek
Trpaai^y and our own "price." Frequently, too, the spade
assumed the shape of a Chinese jacket folded up, a form
readily derived from the other, and representing one of
the most common articles in the market. At first this

291

292 CHINA IN LAW AND COMMERCE

money took the form of mere tokens *' exchangeable for
goods'' or for com, and seems to have been issued without
any special authority. Weights and measures were, how-
ever, reduced early to standard, and the ^' Songs of the
Five Children " in the Shu King apparently refer to these
being kept in the prince's treasury. Some of the earliest
cash, too, state the weight of metal, probably bronze, against
which they were interchangeable. The names of cities fre-
quently appear on ancient coins as if these were only cur-
rent locally. The first state which seems to have issued
coined money, m a Btate^ was Tsi, in Shantung, which
made them in the form of swords with a round hole
through the handle for the convenience of carrying on a
string, and this example seems to have been quickly fol-
lowed. Still the issuing of money as a prerogative of the
state does not seem to have occurred to any of the rulers
prior to the time of T'sin Shi Hwangti ; and neither he nor
any of the sovereigns of the Former Han placed on the
coins issued by them either the dates or names ; and in-
deed the great traveller Chang K'ien, who was the first
Chinese to penetrate to the states of the west, — Baktria,
Parthia, and beyond, — remarks, as curious, that the rulers
of those states placed on the face of their coins their
effigies, which were changed in each succeeding reign.

Larger transactions than mere buyings and sellings in
the local markets could, of course, never have been settled
for by coins of so small value : the medium here was metal
kinj but the particular metal is not stated in the historic
books ; for although kin^ in modern Chinese, is applied
specifically to gold, it has a more ancient and generic
application to metals in general. With Mencius it is in-
variably used for bronze, and this seems to have been its
most general use in prehistoric times in China.

What is known, then, in the age before statistics, is

WEIGHTS, MEASUBES, AND OUBBEKCY 298

that China, after leaving the stage of pure barter, ex-
changed the goods she desired to dispose of against some
metal in bulk. In this practice China agreed with the
other nations of antiquity of whom traces have survived.

Gold as a metal has been known from the earliest
period, but its use was confined to personal ornaments, for
which its ductility and beauty specially recommended it ;
its use as a medium of exchange belonged to far later
times, and in fact was introduced by King Darius as a
complete novelty, the coins thus issued after him having
been known as '^ darics." According to Herodotus the
Lydians claimed the first invention of coins in substitu-
tion for metals in bulk, and recent researches tend rather
to confirm than to contradict this statement of the historian,
or at least indicate that to the countries about the ^gean
is to be attributed a reform so vital to the growth of
commerce. But although gold, as a medium for coinage,
came into use in the time of Darius, and the use was there-
after copied in Macedonia under Philip and Alexander,
in all these cases the value of the gold coin fluctuated
according to the exchange, the other metal, be it bronze
or silver, being looked upon as the more stable, and so the
standard, — a state of affairs still subsisting throughout
Asia generally.

That in China, in the time of Mencius, the kin used in
these transactions, as was the case contemporaneously in
Greece and Rome, was bronze, may be judged from the rec-
ords of his discourses. This sage was accused of accepting
bribes ; he had refused one of 2400 taels, which in sterling
would be worth, say, £5000, supposing the metal were gold;
yet, said his critics, *^ Tou took on two separate occasions
gifts of 1700 taels and 1200 taels : how was this ? " ''I
took the 1700 taels because I had to go to Sung on busi-
ness, and travelling costs money," was the reply. The

294 CHINA IK LAW AND COMMS&CB

journey to Sung would certainly not have cost £8500.
The other case of the 1200 taels of metal, he explains, was
for the purpose of arming himself. A friend had warned
him his life was in danger, and had sent him the metal to
make weapons to defend himself withal. Taking the
metal at the time in use as bronze, both as arms and
as the recognized currency, there is no difficulty in ex-
plaining the story.

It is curious that in none of the Confucian books, with
the exception of the Shu King, and then only once in con-
nection with chased work, on the borders of Tibet, does
the word ^* silver" occur, while several times the metal of
which arms were made, clearly bronze, is mentioned. It
was not, of course, that gold and silver were not known,
but that they did not come within the ordinary daily wants
of the age. They were treasured as personal ornaments
to be handed down as heirlooms, and seldom came into
the market as constituents of trade.

In the Han books, on the other hand, I find tfen^ sil-
ver, gradually replacing the word kin as the ordinary
title for money. Still hwang hin^ ^^ yellow metal," occurs
occasionally as the appellation, when gold, the metal, is
especially intended. The change was thus contempora-
neous with the wide expansion of trade, incident on the
opening of communications with the great West, which
called for an assimilation of the currency to that in use
in the older established Empires of western Asia.

Now it is noteworthy that China does not seem to have
been solitary in this early confusion between bronze and
gold, both words in many of the older languages beiug
traceable to the same root. Thus Sanscrit has hrihis and
hiranam^ both connected with an older form hri- or Aary-,
and referring merely to the colour, tawny yellow, of both.
Similarly, the Greek ;^aXiC(f? and ypwrii are closely con-

WEIQUTS, MEASURES, AND CUERENCT 295

nected. Gothic gvUh^ the modem English ^^ gold," has a
similar origin, and though there is no corresponding title
for bronze, the name adopted, allied with ^^burn" and
^^ brown," shows the prevalence of a similar idea. So Latin
aes (aeriB) is not remotely connected with aurum^ and both
find an explanation in the root of ardeo^ to glow.

Iron had been long before discovered, probably about
fifteen centuries before Christ, and was certainly largely
used in agricultural tools. As iron it was, of course, un-
suitable for weapons, as swords and armour, and the metal-
lurgy of steel was not sufficiently perfected to render it
trustworthy for such uses. Hence the use of bronze was
extended far into the iron age, and indeed has only within
the last half century finally died out, as the continued use
of the English word '^ gun-metal," for one of its varieties,
still remains to indicate.

In no country can the consideration of the currency
be dissociated from the wider question of weights and
measures, and this consideration will enable one, per-
haps, to throw light on the earliest systems current in
China. Although, in the times of the Chow states in
northern China, there were already attempts made to
establish some common system of weights and measures,
for various reasons, probably connected with the jeal-
ousies existing between the different petty kingdoms,
each independent of the other, but little progress was
made. It was not till the time of the ^^ First Emperor,"
T'sin Shi Hwang^i, that any scheme of unification became
possible. Before, however, proceeding with any reforms
of measures and currency, Shi Hwangti found it advisable
to unify the systems of writing then prevailing, which
were still in the most inchoate condition. With this
object in view he called in the aid of his celebrated
minister, Li-Sse, and established the college of the Poh-

296 CHINA IN LAW AND COMMSRCB

Sse, composed of seventy of the most learned professors
of the day. The result was the formation of the Siao-
chwen ('^ small seal character"), which has formed the
basis of written Chinese ever since. The different states
varied so much in speech that colloquially they found it
difficult to converse, but the newly invented system of
writing supplied the want for the written speech.

The next task seems to have been the unification of the
currency, and that was no less difficult. Unfortunately
there is no such record of the steps taken, and one is
thrown back on the remains of the coins illustrated in
such works as the Kta-shih-aoh^ which are by no means
detailed, nor of unquestionable authority. Coins were
issued bearing the inscription pan-liang (half-tael); as
these coins are said to have been of the diameter of 1.8
chun (Chinese inches, probably about 1.66 English), this
weight, which in modern measure would amount to about
2.90 grains, probably represented their true weight. The
history of the Chinese cash is thus by no means unlike
that of the Roman ow. Like the a«, it was first issued of
the full weight, but quickly degenerated and became a
mere token.

The word ^^ Itan^," to represent a weight, seems here to
appear for the first time. In modern times there are in
China, as is well known, two series of weights in use, one
for ordinary market transactions, and one reserved for
weighing gold, silver, and such more valuable articles
as fine silks and pearls. A similar condition of things
occurs in the home lands, where are still used avoirdupois
or troy as the article to be weighed is of ordinary trade
or is bullion.

The so-called money, issued by the various states prior
to the establishment of the Empire 221 B.C., was, as above
explained, really a token issue exchangeable against a cer-

WEIGHTS, MEASUEES, AND CUEBENCY 297

tain amount of grain. T'sin Shi Uwangti desired his to be
absolute coin of standard weight. The weight adopted
needs some explanation. The ordinary weights in use, as
mentioned in the Confucian classics, were the hwan and
the lilU — the first, as indicated by the ancient character,
being a bowl, the second, as shown by the sign used, a
hand grasping the character for corn, signifying a hand-
ful. The coins were in fact tokens or delivery orders
representing a liity or later five against twelve lUt. Shi
Hwangti*s reform consisted in changing the token for an
absolute piece of money, and the weight adopted was half
a tael, practically 2.90 grains. Now originally the tael
was the weight of a bronze arrowhead, as the higher
denomination, the kin^ was the axe-head. Ein still, in
modern Chinese, retains its meaning of axe, and is repre-
sented in the seal character by a sign indicating an axe
swung by the handle; the sign used for Hang equally
represents a pair of arrows in a basket quiver. The word
arpa/cTo^, in fact, in its meaning of spindle or arrow, the
Sanscrit terku-s^ is connected phonetically with the Chi-
nese liang; both originally having been formed of bronze,
as was also the coin. Now in prehistoric times, before
decimal counting had been introduced, the Chinese, like
other nations, formed their subdivisions by dividing
continually by two, and hence the axe and the arrow-
head came to bear the proportion of 16 to 1 actually
borne by the km to the tael ; but with the general intro-
duction of the decimal system, which certainly took place
before the foundation of the Empire, both could not co-
exist, and while the tael continued the standard for
money, the kin was made the substitute for the older
hwan in ordinary marketable transactions. There ensued
a period of confusion after the death of the first Emperor,
but with the accession of the Hans the older system of

298 CHINA IN LAW AND COMMEBOB

weights died out ; and from that period the kin and the
Hang continue the chief weights, but with the distinction
that the one is used for ordinary articles, the other for
bullion and valuables.

As in Rome, the 09 did not long retain as a coin its an-
cient value, but was continually reduced in weight accord-
ing to the immediate exigencies of the state, we find a
similar and progressive deterioration also taking place in
China ; and from the beginning of the Han dynasty the
coin, now for the first time called a t'sien^ or tenth (by
foreign residents a cash) became reduced in weight and
value.

So in measures of length I find a duplicate system pre-
vailing, as the object to be measured consisted of goods,
as cloth, etc., to be measured for sale in the market, or of
land, to be assessed in taxes to a feudal superior, or an-
nually divided as folkland for the purpose of cultivation,
or measured in stages for the imperial post service. Curi-
ously, there is the same distinction existing in England
to the present day, where the two have entirely different
standards. The measure made use of in trade is founded
in China on the chik^ or rule, as in England on the yard,
which is simply the ordinary length of a yerde^ or walking
stick. Other measures, as the foot and the ell or cubit,
have from time to time prevailed, but the rod seems even-
tually to have been found the most satisfactory. The
Chinese word *^ chik " seems to have no reference to the
foot, and is probably only a variation from chak^ a rule or
standard; perhaps associated with a form meaning to
double, and so connected with Latin cubitum^ the double
arm, the elbow. The land-measure is, on the other hand,
founded on the ordinary stride or double space. It is
counted in China as 5^ English feet, and hence comes into
a curious connection with the English perch of 5^ yards, or

WEIGHTS, MSA8URE3, AND CURRENCY 299

exactly S times the length, which forms similarly the basis
of English land-measurement. The similarities, which
certainly point to some early association, do not end here.
In both systems the standard multiplier is 40. Thus, in
English land-measure the foundation of large areas is
taken as the furlong (furrow-long), which consists of 40
perches, or 120 Chinese pu; this length, with a width of
4 perches, forms the English standard acre, and, with a
width of 2 Chinese pu^ forms the standard Chinese mow^
corresponding with the acre as the standard of area for
all imperial purposes. The Chinese mow is thus the exact
equivalent of one-sixth of the acre. The furrow-long, as
has been seen, is in length 40 perches (220 yards). In
China the same length, 120 pu^ multiplied by 3, forms the
Zt, the Chinese unit of road-measures, which thus becomes
the three-eighths of the English mile. The combination of
these two factors, the pu of 5^ feet, and the multiplier, 40,
will bring out many similar approaches between the two.
With the want of precision which at all times charac-
terized Chinese measures, it is not to be expected that in
any part of the Empire these weights and measures are to
be held exact. Thus the Zi, as a measure of travel, differs
considerably in different parts of the Empire, and often de-
generates into a rough measure of the time occupied in
traversing some particular portion of a road, and not in-
frequently the traveller finds the distance between two
towns differently counted as the road ascends or descends.
Land-measure is apt, too, to be stretched in poor land to
make up in a rough way for its inferior productiveness,
and so go toward equalizing the taxation always assessed
by the mow. The clothmaker's, the mason's, and the car-
penter's ehik will also be found to differ in any locality,
and hence much confusion arises even amongst the natives
of a single district. Still, on the whole, throughout the

SOO CHINA IN LAW AND COMMERCE

Empire these various discrepancies oscillate about a mean,
fairly represented by the measures given above. Neces-
sity has, however, in one or two instances compelled ex-
actitude. Thus, the monetary tael, however the local tael
may vary, is always of the standard weight of 579.85
grains troy. Curiously, this uniformity does not produce
a standard currency. It is in many places an old custom,
for instance, that an ad muericordiam allowance should be
made in the payment of taxes. Thus in Shanghai, in
paying government taxes, 98 taels are accepted as the
equivalent of 100 ; so the proportion of alloy varies, the
fineness being reckoned in different localities from 916 to
1000, and these distinctions have ever been a source of in-
convenience to the natives themselves, and are upheld
partly through the national dislike to change, but mainly
through the influence of powerful associations who find
profit in their continuance.

The commercial currency of modem China is silver,
with the tael as the unit of weight. Chinese history is
silent as to when or how this change from the old style
came about. As above mentioned, silver as an article of
exchange does not occur in the Confucian classics, and
one first catches glimpses of it, as such, under the Han
dynasty. In all probability, therefore, the introduction
of silver in mercantile transactions was contemporaneous
with the opening up to Chinese commerce of central and
western Asia which followed the travels of Chang K'ien
in the second century before Christ, and which brought
China for the first time into touch with the silver-using
countries of the west. At all events, from this period
onwards, yen, silver, becomes the ordinary word in use to
express money, and the tael is for the future the accepted
unit of weight.

The tael so adopted seems to have remained fairly con-

WEIGHTS, MEASURES, AND CUBBENCY 301

stant, aud there was little change from the old standard,
apparently about 1^ ounces avoirdupois, say 588.8 grains,
except a slight drop to 579.85, which has continued the
monetary standard ever since, as against the mercantile
standard of 1| ounces which still forms the basis of the
mercantile system of the catty, 1^ pounds avoirdupois, and
its multiple, the picul of 100 catties, or 188 pounds. The
tael of account, as explained, differs locally according to
allowances and fineness, but these are eventually all reduci-
ble to the standard, and are constant. Thus the Shanghai
tael, the best known as coming into foreign commerce
most frequently, is found to weigh 568.25 grains of a fine-
ness of f^^i^ y and so actually contains 520.52 grains of pure
silver. The official tael, in which duties have to be paid,
and known as the Euping or Haikwan tael, is actually
money of account, containing, whatever may be its fineness,
679.86 grains of pure silver.

Toward the end of the sixteenth century Spain annexed
the Philippines, and this had a temporarily disturbing influ-
ence on finance. The Chinese have themselves in all ages
felt the inconvenience of their primitive system of currency
and would have eagerly welcomed such a change as would
have resulted in a settled system of coinage. The example
of what had been done by one government after another
with respect to the bronze coinage, and its persistent
decline both in weight and purity, was not reassuring ;
and, anxious to have some system of payment on which
they could depend, and which would not be subject to
sudden and arbitrary fluctuations, they declined to accept
any of the schemes offered, and preferred the older system
of bullion payments, which were guaranteed by the chop of
some association under their own control, and in which they
could have confidence. Hence arose a system of banking
which in China, before all other countries, at an early period

802 CHINA IK LA.W AND COMMSBCB

became closely associated with the business instincts of the
Empire. In return for the undoubted advantages offered
by the banking guilds, there was the undoubted disadvan-
tage that the banks in time became dissociated from the
merchants, and to suit their own ends kept up those local
distinctions which have ever been an incubus on the in-
ternational trade of the Empire. The Chinese had to
weigh disadvantages, but on the whole they have felt that
the interests of trade were better subserved by having
a trustworthy and responsible intermediary in the banks
than by placing themselves in the hands of an irre-
sponsible government against which there could be no
redress.

When Spain annexed the Philippines, an opening seemed
to present itself for the introduction of a settled system.
Spain had acquired during the preceding century the
countries of Mexico and Peru, both rich in the precious
metals, and a considerable flow of silver set in toward
the home country. The possession of the Philippines di-
verted this across the Pacific to Manila, which from its con-
venient position with regard to China and Japan soon
became an important centre of trade, and Spain was
proportionably enriched. With a continuous stream of
silver constantly arriving, the mints of Spain were kept
busy, and Spanish dollars became the common coin of
the world, and many of them found their way to China.
Here their purity and uniformity made them general
favourites, and for a time they became almost the current
coin of the land. It is interesting in this connection to
quote a pamphlet issued in Shanghai by an anonymous
Writer in 1866 : " When this port was opened to foreign
trade in 1843, it was found that here as at Ningpo, and at
the great commercial centres of Soochow and Hangchow,
a short way in the interior, the Carolus dollar had long

WBIGHTS, MEASURES, AND CUBBENOY 803

been in general use. Much of the smaller business of
buying and selling in sfaopkeeping was transacted in it, al-
though the great staple articles of the native trade here, such
as pulse, raw cotton, cotton cloth, etc., were still bought
and sold, not by dollars as the gauge of price, but by taels
of silver. The progress of the dollar in banking business
had been more rapid and decided, — the notes in common
circulation for the most part specifying dollars. Thus
both dollars and ingots of silver were in current use here,
and most of our first sales were for payment in %y€ee
(uncoined) silver at the premium of the day."

Consequent on the decay of the Spanish monarchy the
supply of silver fell off. Still, however, toward the end
of the eighteenth century large quantities of dollars bear-
ing the effigies of the two monarchs, Charles III. and
Charles IV., found their way to the Far East, and from
their uniformity of weight and fineness entered largely
into the trade of China. From the device, borne on the
reverse, of the fabled Pillars of Hercules, they came to be
familiarly known as ^^ pillar dollars," and they formed an
important element in adjusting the balances of trade then
largely in favour of China. With the revolt of her South
American colonies Spain ceased to take any appreciable
part in the commerce of the world, and, the supply of silver
for mintage rapidly falling off, the stock ceased to be re-
newed, and no more pillar dollars came to China to make
up for the ordinary wear and tear of the coin. To quote
again the pamphlet referred to : ^'For a number of years
little inconvenience was felt, although as compared with
the copper coin of the country the Carolus dollar gradually
rose in nine years from being worth 1150 to about 1500
copper cash.

^^ The increasing quantity of them gradually drawn off
into the adjacent silk districts, as well as the tea districts

804 CHINA IN LAW AND OOMMEBCE

of Anhwei, not to mention the quantities occasionally
exported to Canton, etc., fully accounted for this rise.
During the same period the value in sterling of the dollar,
or the rate of exchange on England, had varied between
the limits of 4«. and 5«. 6(2.

^* Such had been the state of things prior to 1853, when
rebellion, with all its train of horrors and disasters, burst
upon central and northern China, deluging the land with
blood and spreading ruin and desolation far and wide.
Then, since on the one hand the Carolus dollars were
eagerly sought for by the terrified people, as the most
convenient form by which a certain well-known value
could be represented and secreted for future use, and as a
consequence of the unnaturally stimulated demand rose to
a price far above their intrinsic worth, — and on the other
hand the sale of every kind of import except opium was
almost at a stand, the inevitable result was an unprece-
dentedly high rate of exchange on England. Since the
troubles began in 1858, this rate has fluctuated between
5^. Id. and 7«. 9(2., the present rate being 6«. 4d. One
may thus estimate the Carolus (pillar) dollar, judging by
the rate of exchange on England, to have averaged twenty-
five to thirty per cent higher than its previous average
value."

The effect of these disastrous conditions on the trade
of China, already suffering from the severe fluctuations of
exchange, was marked, and commerce languished. An
ineffectual effort was made to supply the deficit in the
favourite medium of currency by the introduction of the
new Mexican dollar, bearing as its device, on one side,
the ^^cap of liberty," and on the other an eagle stran-
gling a serpent, and an attempt was made to force the
new coin into circulation as the equivalent of the old
familiar ^* pillars." The attempt, after a firm refusal on

WEIGHTS, MEASURES, AND GUBBEKCY 806

the part of the banking guilds supported bj the weight
of public opinion, to accept the new coin, except at its
intrinsic value, was wisely abandoned. Up to this time
(1856) accounts by the foreign mercantile houses and the
foreign banks had been kept in Carolus dollars. Foresee-
ing the danger to commercial interests lying in the fur-
ther use of a rapidly disappearing coin as a standard of
account, the market rate for the Carolus dollar being now
equivalent to the Shanghai tael, the banks and foreign
merchants acting in concert determined to change the
unit. Accordingly, on a prearranged day, every bank
and every merchant doing business in Shanghai changed
the headings of all accounts from dollars to taels, the
figures remaining the same. No difficulty was experienced
in the alteration, and the local tael has continued satis-
factorily the standard of buying and selling ever since.
The actual intrinsic value of the two was in the propor-
tion of 72.48 to 100, the Carolus dollar having thus
attained to a premium of upward of twenty-seven per
dent.

The convenience of having a coin of fixed value in pur-
chasing and selling by retail caused the general introduc-
tion of the new Mexican dollar for ordinary local use, and
the two — dollar and tael — have since found their place
in the local market concurrently; in exchange quota-
tions the dollar is quoted daily in terms of the tael, the
clean, unmarked coins (chopped is the local word in use)
being generally at a slight premium over their bullion
value, and the two coins, old Spanish and new Mexican,
are practically identical in intrinsic value.

Causes similar to those that brought about the first
appreciation of the Carolus dollar, namely, the cessation
in China of imports owing to the devastation of the Tai-
ping rebellion, and, in addition, the enormously increased

806 CHIKA IN LAW AND COMMEBCB

demand in Europe for silk, brought about by a strange
epidemic disease to which the silkworm suddenly became
liable, and which at one period was so serious as to threaten
the entire destruction of the crop, increased the silver
requirements of China to an 'unprecedented extent. The
price of the Shanghai tael of silver at the rate of Ss. per
ounce amounts to about 5«. Id, ; it actually rose to 7«.,
and for a series of years continued over 6$, 4(2. It so
happened that at the same period France showed a dispo-
sition to introduce a gold coinage, her chief medium of
currency having up to this time mainly consisted of silver
five-franc pieces. The new coin was of the value of twenty
francs, and was known as the napoleon. The French
people took kindly to it, and the government took advan-
tage of the demand in China to get rid of enormous
quantities of these old coins, which were converted into
bullion and shipped to the East, to the mutual satisfaction
of both countries.

The demonetization of silver in Grermany after the war
of 1870 threw still greater quantities of that metal into
the market, while the opening of the new mines and the
cheapening of the cost of production had a marked effect
all over the world ; and from this period a steady decline
in the price of silver as compared to gold set in, which
continued practically unchecked for thirty years, and has,
as a result, brought about an entire reconstruction of the
China trade. After the events in north China in 1900,
the European Powers imposed heavy penalties on China,
which by means of a nominal loan bearing interest, and a
sinking fund, were spread over a long series of years.
China, to enable her to meet the strain, was to be per-
mitted to raise her duties on foreign imports ; but, incon-
sistently, while the interest and sinking fund were to be
annually paid in gold, the duties from which funds for

WEIGHTS, MEASURES, AND CUBBEKCY 307

payment were to come were stipulated to be payable only
in silver. The result, which seemingly neither side had
sufficient knowledge of finance to foresee, was a panic in
the silver market and a drop in the Shanghai exchange
market to 28. 2d. per tael, the lowest point ever touched.
Since then there has been a tendency to rise to more
medium rates.

As a matter of fact, silver has at all periods in the Far
East had a tendency to be overvalued with reference to
gold. By general consent prior to the eighteenth century
silver was looked upon both in Europe and Asia as the
more ^' stable " metal, and so became practically the uni-
versal currency. This disposition was even more marked
in the Far East. There are few means of ascertaining
their comparative values in ancient times ; probably they
differed much at various times and in different localities,
and the task of seeking to reduce them to anything like
uniformity would be hopeless.

During the Middle Ages in Europe the relative cost of
gold as compared with silver seems to have remained fairly
even at from 10-12 to 1. In the sixteenth century, in
consequence of the discovery of America and the opening
of the rich mines of Mexico and Peru, the value of the
precious metals in Europe underwent great changes, and
the purchasing pow6r of both gold and silver greatly fell.

Their relative values also changed, and the ratio in-
creased to 14 to 1, and before the close of the century to
15 to 1. In the eighteenth century it was pretty constant
at the latter rate. By the middle of the nineteenth cen-
tury the ratio had risen to about 15^ to 1 ; since when it
has fluctuated, rising about the beginning of 1902 to
nearly 44 to 1, and is now, 1904, about 85^ to 1.

In Asia, and especially eastern Asia, the proportion has
never risen so high. In 1627 we find their agent at Ban-

308 CHINA IK LAW AND COMMERCE

tarn thus reporting to the newly established East India
Company, who wished to extend their trade to China, and
had entered into a tentative arrangement with the Dutch :
^^In China is no coin current, neither gold nor silver.
The common people usually go to market with small pieces
of silver sold by weight, which they proportion according
to their measures. The rial of eight (Spanish dollar) is
there worth seven eop<mgoe$^ thirty-six or forty whereof
will buy a rial weight of the purest gold." This would
make the ratio 5^5| to 1. This again agrees with what
was discovered to be the actual ratio on the reopening of
Japan, when the value of the gold and silver coins in
current use was found to be under 6 to 1.

I do not propose to go into the recent history of the
currency in Japan further than to point out that after
the Empire had become actually denuded of gold, the gov-
ernment was finally compelled at considerable expense to
adopt a gold standard. In Uke manner the recent star-
tling variations in silver quotations in China are slowly but
steadily driving that Empire to adopt the gold standard.

China, it is interesting to observe, has at all times been
a gold-exporting country. It has long been known that
large deposits of gold occur in the range of mountains
stretching from north of Peking along the northern boun-
dary of Korea as far as the Sea of Japan. The govern-
ment of the country has ever discouraged the mining of
gold, and what has been raised has been done surrepti-
tiously. Notwithstanding this fact, large quantities of
the metal find their way annually to the treaty ports,
where they form an important item in the lists of exports.

CHAPTER Xm

LAND TRANSIT

Vast and far-reaching as are the waterways of China,
they are not sufficient to meet the demands of the internal
commerce of the Empire. This deficiency had been met
in the far distant past by the cutting of great highroads
which linked such portions of the dominions and colo-
nies of China as were unapproachable by water. By
searching the pages of history prior to the destruction of
Carthage by Rome, we find that for the purpose of keep-
ing his caravan roads open to the southwest of Asia, the
Emperor Wu Ti found it necessary to break the power of
the Turkish Empire in the regions of the Kara Nirus. The
great diplomat and general, Chang K'ien, was despatched
to the limits of Asia and the eastern borders of Europe as
ambassador, accompanied by an imposing staff, to open up
trade relations with the west by caravan over the **' excel-
lent " roads then in existence. But he was captured and
imprisoned by the Turks. So enraged were the Emperor
and his people at the violation of the sanctity of the am-
bassador that the wars commenced which ultimately broke
the power of the Turks in the Kara Nirus country and
made them seek outlets farther west.

The Chinese gained a commercial influence in the
Tahai country (three hundred miles north of India), to
which a broad road was built, and established trad-
ing missions in this country, as well as in that of the
Yuehti, and with the northern tribes of Tibet. Such mis-

800

810 GHIKA IN LAW AND OOMMSBCS

sions could have no other result than the spread of knowl-
edge concerning the Chinese merchants and their wares*
and the bringing of them into contact with those other
past-masters of trade, the Parthians, who had perfect roads
constructed across their country, some fully four hundred
miles long, reaching from Samarkand to Sarangia, and
thence to the sea^^oast near the Tiouchi country. Thus*
with the excellent horses of the Urh Shi, which, according
to Parthian accounts, were the finest in Asia, they kept
up carriage communication between east and west Asia.
This being the case, one might well ask, ^^ Where are
the roads of yesterday ? " as there does not exist to-day
in China a highway of any length which, to the western
mind, could be termed a road.

About a century before Christ there were four great
roads leading from Peking through Szechuan via Mang,
Yen, Tu, and Kungpak. The southern road was continu-
ally set upon by the Kwenming (a tribe of robbers), until
the Emperor Wu Ti through various generals with large
armies defeated these lawless bands and established the
sacred principle among them that trade and diplomatic
missions must be free from molestation. The civilization
of the Wu Ti era was evidently more advanced than that of
Kwang Hsu, under whom it was permitted that the lega-
tions in Peking be attacked and a minister murdered in
1900. To show the Oriental idea of trade mission, I will
quote the following from a paper by T. W. Kingsmill:
"When the first Chinese envoy arrived in Parthia, the
King (Mithridates II.?) despatched a general with 20,000
horses to meet him on the western frontier. On the way
they passed some ten cities. The inhabitants were all
of the same race and very numerous. On the return of
the mission he sent envoys with it that they might see
the extent and power of China. He sent with them as

LAND TRANSIT 811

presents to the Emperor eggs of the great bird (bus-
tard?) of the country, and a curiously deformed man
from Samarkand/'

The trade roads were great arteries of China trade to
the northwest, west, and southwest ; but that to the west
was the easiest, best, most remunerative, and most used,
as caravans passed and repassed regularly to the countries
beyond, and one may gather that the trade was carried
for the most part in carts, since with respect to one
primitive expedition we read that the Emperor sent men
skilled with carriages (carts ?). ^^In little more than a
year there marched out of Tunkwang a force of 60,000
men, not including army followers, accompanied by
100,000 cattle and upwards of 80,000 horses, besides
10,000 mules, asses, and camels, all well supplied with
fodder. . . . Men used to the management of vehicles
were sent to join it at Tunkwang, and two cavalry officers
well skilled in the management of horses were attached
as instructors in horsemanship, to take back the Shen
horses after the capture of Yuan/' We find that the
roads over which these armies marched were good and
levelled.

I make use of these incidents to show the importance
of roads in the minds of the Chinese for commercial and
military purposes, even in remote ages over two thousand
years ago.

It is really only since the alien has sat on the throne of
China that all means of communication by water and land
have been permitted, like all other institutions, to become
corrupt and dilapidated. As the rule of the Turk in
Egypt destroyed all the useful monuments of its com-
mercial people, so the Manchus have obliterated aU indi-
cations of commercial advancement in the territories they
conquered. Nowhere is this more apparent than in the

812 CHINA IK LAW AND COMMEBCB

gradual disappearance of roads, which until the last couple
of centuries were rivals of the ancient Roman structures
to be found at this day in England.

So great, indeed, did the expert caravan trade of China
become by the beginning of the first century before Christ
that *^ westward as far as the Lob Nor (Salt Water Lake)
resthouses were established. At Luntow a hundred agri-
cultural officers were appointed for the purpose of encour-
aging the cultivation of millet and corn to supply the
caravans on their way to or from foreign countries."
(From the history of Sze-Ma Tsien translated by Kings-
mill.)

In the south the ancient trade roads from the Yangtse
through Yunnan into Assam and Laos across high moun-
tains were, according to ancient records, comparable with
anything of the kind in the Empire in its most glorious
days of overland commerce. But these have been allowed
to fall into such decay that they may be said to have
disappeared completely, leaving only foot-paths and goat
tracks. Such a state of things could have but the one
result, namely, the death of Yunnan as a trading province,
in spite of the fact that this province may be considered
the father of the mineral resources of China. There is
no possibility at present of working the marvellously rich
gold-bearing crystalline granites to the south of the prov-
ince, near the Burma frontier, owing to the fact that all
machinery must be carried by pack animals or by porterage
over these mountain tracks. In the north and west of
China, where water transit is not as convenient as in the
south, middle, and eastern sections, we find portions of
roads that would compare with those in any part of the
world, but they are found only in short stretches. These
portions are where the roads have been hewn out of the
solid rock of the mountains over which they pass. The

LAXD TBAKSIT 318

celebrated traveller, De Guignes, remarked in the ac-
counts of his journeys, "I have travelled near six hun-
dred leagues by land in China and have found many good
roads, most of them wide and planted with trees/' This
description could well apply to many of the roads in
Shansi and Shensi, as well as in the hill regions of Shan-
tung, where the military roads were originally well
planned and have been kept in many places in reasonable
repair.

Owing to the consistent lines on which the sections of
roads cut in the mountain rock run, it is quite apparent
to any observing traveller that they form a regular trunk
system of highroads for either military or commercial
purposes, and were at no distant date well maintained
in the provinces north of the Yangtse valley, particu-
larly in Kansu, Mongolia, Manchuria, and that district
of Chili north of the Great Wall known as Jehol (Hot
Rivers).

Baron von Richthofen, ** China," says of the roads of
Shansi : ^^ The great roads from Peking to the southwest
and west pass through all the chief towns of this province,
and when new probably equalled in engineering and con-
struction anything of the kind ever built by the Romans.
The stones with which they are paved average fifteen
inches in thickness. Few regions can exceed in natural
difficulties some of the passes over the loess-covered tracts
of this province, where the road must wind through miles
of narrow cuts in the light and tenacious soil."

The construction and maintenance of roads in China is
considered an immortal virtue by the people. Who, in
travelling through, or approaching a town, has not seen
a tablet or monumental stone, at the side of the road,
describing the many immortal virtues of him by whose
means that road has been constructed ? Such a one on

S14 CHINA IK LAW AND COMMSBCB

his death becomes the recipient of posthumous honours if
accounts of his good deeds reach the imperial ear.

So important is the question of roads in China that the
central and provincial government budgets contemplate
the raising of funds annually to be expended on the con-
struction, improvement, and maintenance of military and
trade routes, as well as the deepening, widening, and
general care of creeks in those provinces where the latter
take the place of roads. It is owing to the corruption and
indifference of the o£5cials, who, coming from other
provinces, have no local interest in the conditions and
facilities for traffic, that these are only too apparently
neglected, and the money which should be spent thereon
finds its way into the official private purse.

Where a particular official has a desire to be somewhat
less dishonest than his brethren, his ignorance regarding
general matters of administration prevents the greatest
use being made of the funds set apart for the improve-
ment of communications within his district. His want of
knowledge enables the one actually conducting and super-
vising the work to make enormous squeezes without any
check whatsoever from higher sources.

Although roads of the western standard may be said
not to exist in China, it is the greatest possible mistake
for those unfamiliar with the country to think that they
cannot travel by road. They can in certain sections of
the country travel for many miles on excellent roads,
which, however, are abruptly intersected at times by
gaping chasms caused by the rain washing little rivu-
lets in the route. These not being attended to or
repaired soon become broad guUies or stream beds, ren-
dering traffic impossible. On the other side, again, the
roadway may be excellent, only to become impassable
once more farther on. The Peking, Yungping, Shanhai-

LAND TRANSIT 815

kwan, and Kinchow highway, excellent in portions, fur-
nishes an instance.

There is a fine caravan road from Peking to Yarkand
in Chinese Turkestan, and thence to Kashgaria and
Bokhara. This road can be traversed throughout its
extent by carts, though it lies across stiff mountains, and
the journey is a long one, occupying four months. There
is one most difficult pass, which the Chinese regard as a
strategic position against western (Russian) aggression
and hold with a large garrison who are supposed to
keep the country round about quiet and the caravans free
from molestation by robbers. These soldiers, however,
are as obnoxious to trade as are the robbers.

Another road branches south from Yarkand through
Ladak or Little Tibet and on to Kashmir. The route,
though hilly, is good and can be made in less than a
month, though goods caravans take three times that period
in pursuit of orders and barter of goods. There is a
perfect road through dense wood, full of all kinds of
large and small game, between Yarkand and Oksu,
which can be covered in less than twenty days. All
these roads from Yarkand are kept in order by the
natives of the countries through which they pass and are
not the concern of the Chinese government. Hence the
difference between them and those in China proper. On
these roads the Chinese carry on to this day an extensive
trade.

A personal observation of their methods of dealing
with creeks for navigation may indicate to the casual
traveller the lines on which all structural and remedial
works are and have been approached during the days of
the present dynasty, and may give an impression of the
reasons for the condition into which the roadways have
been perndtted to lapse.

316 CHINA IK LAW AND COMHEBCK

The Chinese are more or leas students of nature in its
varying forms, and thej learn much from it in the ab*
stract; but the seeming lack of reasoning power dis-
qualifies them from taking full advantage of such lessons
as nature gives. For instance, they observe that the
banks of a river prevent the water flowing over the land.
Reason does not impress them with the fact that the river
current has cut down into the earth to make a bed for the
stream, and that the natural bank so made is always
stronger than an artificial bank. Therefore they say to
themselves, as banks keep in water and we require
creeks to water our crops as well as navigate our ^^ rice
boats," we must build banks, and so make canals. This
is a very excellent idea, but what is the fact ? After a small
and narrow cutting has been made for a creek bed and the
material therefrom piled on either side for the foundations
of the banks, the face of the surrounding agricultural fields
is scraped down a couple of feet to build up what are
called ** flood banks." In a country like China, where
most of the creeks are cut in the delta formations of the
great rivers or detrital plains, these creek beds get silted
up with a dense deposit of mud, and, with continual
scrapings of the fields to repair the banks, these same fields
get far below the level of the creek's bed. This means
destruction to the rice and grain lands should the creek's
banks burst in time of exceptional flood, as was the case
in the time of the deplorable Yangtse floods in the year
1900. In the same way the Chinese reverse the order of
the West in the construction of their roads, which instead
of being built up above the surrounding level are cut
below it, so that in the rainy season these roadways rot
and become rivulets, if not regular mud creeks.

It is astonishing that in a country where there is so
much honour and reverence for the ancients and their

LAKD TRANSIT 817

teachings, those teachings should not be taken to heart by
the present generation of Chinese, and therefore such
ancient monuments as the Great Wall, the Bamboo Pali-
sade, the ancient trade roads, and the canals be allowed to
fall into bad repair, if not out of use entirely. This,
however, is the case, and it is an illustration of the
contradictory nature of the Chinese.

So little respect have they for such ancient monuments
that in the country or province of Confucius the poor
agriculturist whose plot lies along the roadway thinks it
very good business (^pidgin) to steal as much as possible
of the highways (even those made under the Emperor
Hwangti, 2687 B.C.) by digging a couple of feet into his
land each year, and this going on for a few years ends in
converting a thirty-foot military road into a coolie carrier's
footway on which it is almost impossible for two bearers
to pass each other. This state of things has actually
taken place at Weihaiwei since the British occupied the
harbour and the surrounding country for a radius of ten
miles. There was as little protest from the enlightened
British governing officials as there is usually from the
same class of Chinese, so that now the British taxpayer
has to pay for the making of fresh roads.

What has occurred in the matter of stealing may easily
be seen in many districts where the cultivated lands are
adjacent to rocky hills. Only the narrowest roads or
footways separate the former and lead to the hill high-
ways of excellent quality, which, under good engineering
plans, have been hewn in the solid rock, gradually winding
their way up the hillside until the wide pass is met and
then down a slow, winding descent on the other side.
Wherever rock has been cut away, the amount removed
has been utilized for filling up any crevices, fissures, or
gaps met with in the ascent or descent.

818 CHINA IS LAW AND COMMEBGB

Nearly all these mountain roads are of a width to per-
mit the passage of at least two Chinese long carts, and
sometimes on the bigger trade routes as many as four, of the
same class of cart, can move abreast even in the high
mountain passes. In nearly all the mountain passes along
the trade roads of north China there may be seen what
appear to be shrines to some god or other, and there are
many travellers and writers who have called these shrines,
but they are only partially correct. These large struc-
tures with stone seats along the walls were not origi-
nally miniature temples ; though they may now maintain
mendicant monks of the Buddhist or Taoist faith, they
were built as mountain guard-houses to protect the travel-
ling caravan and the belated merchant caught in the pass
by the approach of night. Careless of everything, even
the protection and development of trade, the Manchu
rulers of China have for purposes of economy withdrawn
the trade-road guards from these hill stations. The night-
beset traveller, however, can still find these desolate
buildings a resthouse, without comfort but with the
doubtful companionship of a Buddhist or Taoist priest,
who is more often than not in league with the bandits
and highway robbers of the neighbourhood. It were better
for the traveller did he pass by this uninviting abode ; but
if he remains, he should only eat and drink that which is
cooked by himself or by his own servant, and never accept
the smoke offered him by monk or nun lest worst befall
liim. Many of these past guard-houses are still to be
seen, though greatly dilapidated, in the provinces of
Fukien, Chekiang, Kiangsi, Hunan, Hupeh, Kansu, Shensi,
Shansi, Shantung, the regions about the Great Wall and
to the north thereof; and in Manchuria these passes,
curiously enough, have a better reputation and are less
ruined than in other parts of China.

LAND TRANSIT 819

Williams, in his " Middle Kingdom," writes, " The
public roads, in a country so well provided with navi-
gable streams, are of a minor consequence, but these
media of travel are not neglected." It would have been
better if this high authority had said that '^ these media
of travel are not wanting," as they are very much neg-
lected indeed, and but for culpable and even criminal
neglect on the part of Manchu officialdom, the ancient
roads for China's inland and overland trade would still be
among the finest in the world.

The roads that are not cut into the rock over mountains
and through mountain passes are generally paved with
long slabs of granite or other hard stone, like the Ningpo
agglomerate, which stretch right across the width, or
half the width, of the fairway. The slabs generally
measure seven to twelve feet long, by eighteen inches
wide and twelve to fifteen inches thick. Where the
roads are not slabbed on the surface in this manner,
they are bunded with such slabs, and the intervening
space is well set with cobblestones or old brick fitted
on edge and making different patterns. Few people in
the world can compete with the Chinese in cobbling in
this manner, as to both finish and rapidity of work;
but in spite of the rapidity it must have taken a very
long time and much money to complete many of the exist-
ing roads of this type. Instances of this class of road
are not wanting in any part of the country. Much of the
one hundred and twenty mile road built between Nanking
and Fungyang by the founder of the Ming dynasty, Hung-
wu, was of this class. This fine piece of road engineering
was in many places fully twelve feet above the surrounding
country, and, with funds, can be repaired into one of the
best means of transit in the country, as it is over twenty-
five feet wide in general, but in places as much as forty
feet wide.

820 CHINA IN LAW AND COMMEBCB

Another great paved road was the Hangchow-Chengtu,
but, as in all the others, the paving only remains in
patches.

In the north of China, after official neglect, frost, wind,
floods, and the sharp, heavy wheels of the carts are the
worst enemies of the highroads ; but the transit merchant
cannot be expected to improve his cart or cart wheel until
the roads are better, and these present wheels only make
tolerable roads soon intolerable, by cutting deep ruts,
which help the frost and wind to pulverize the ground,
and then the floods wash away these light portions.

As the region of any large waterway is approached the
roads become impassable, owing to the effect of floods and
official neglect. In the delta, or detrital plains formed by
many rivers emptying themselves into the Gulf of Pechili,
the routes run over this light soil, which at times is bat-
tened down into hard mud tracks, sometimes hundreds of
yards wide, particularly in the salt plains of Chili ; owing
to the aforementioned reasons they become very rutty
and most uncomfortable to travel over at any time, and in
particular the road from Tsinanf u in Shangtung to Peking
via Tehsien and Hohsien, becomes, during wet weather,
when the air is moist and very hot, a veritable morass, in
which the cart animals sink and are sometimes drowned.

Owing to the light nature of the soil and the enormous
traffic on the roads there is a layer of dust in dry weather
nearly a foot thick, and this, when disturbed by pushing
hoofs, makes travelling of any kind anything but a pleas-
ure, and this discomfort becomes magnified if one travels
in carts.

I have mentioned the disintegrating effect upon the
roads of frost, wind, cart wheels, and floods, and the con-
tinuity of these injurious agencies gradually works the
roads down until they become flood conduits, and ulti-

LAND TRANSIT 821

mately nothing but gully beds, containing ten to twelve
feet of water during the summer months, and then road
traffic has to be entirely suspended. In the northern
provinces such is the effect of summer floods that no
attempt is made to transport merchandise for over two
months, and in the frost-zone areas traffic is again sus-
pended when the ice and snow beg^n to melt.

In the regions round Newchwang the subsoil of the roads
has no binding qualities and is so light that for six weeks
on end the roads were and are deep marshes, so much so
that it is a common sight to see a cart, with the six or
eight animals which pull it, gradually sink and the animals
drown in the general highway. The Russians, since their
occupation of Manchuria, including Newchwang, have
done much to improve the roadways, which had lapsed
into an impossible condition for trading. Throughout the
main road of the foreign settlements and at the back of
the British Concession they have improved the cartways
as well as the footways. In the centre of the thorough-
fare they have laid down large slabs of granite across the
road, and though this makes excellent but noisy carriage-
ways, it was their intention, prior to the outbreak of the
Russo-Japanese war, to have left these slabs as a firm
foundation on which to build up a macadamized highway
similar to the highways they have constructed in other
parts of Manchuria for military purposes.

It is not an infrequent thing to see carters, when the
regular road is too bad, starting to make a new road for
themselves over the adjoining fields which are not blessed
with hedges or ditches. When passing along, one may
often see a deep, wide rut cut, and the excavated clay
piled up on one side by a farmer in preparation for the
sowing of his crops. This is done to signify that traffic
must cease over tina portion of the field, but such hints

822 CHINA IN LAW AND OOMMSBCB

generally go unheeded, and the carter goes whither he
will, a custom more noticeable amongst the Mongolians
north of the Great Wall, as they do not engage in tillage
themselves, and have little real respect for those that do.

Improvements in roads throughout west and southwest
Chili are now more generally engaged in since the un-
toward events of 1900, after which there was the hasty
imperial flight to Hsianfu. This was accomplished over
the dilapidated tracks relegated to the trader, carrier,
and coolie porter under ordinary circumstances. The
return journey, however, was not so arduous for the
royal travellers, as each official through whose district the
journey had to be made, had to see that the road was put
in perfect condition and that suitable imperial resthouses
were erected at the different stages wherever these rest-
houses had been allowed to fall into decay; but where
they still existed, large sums were spent on the necessary
repairs.

In connection with the return to Peking it is interesting
to quote from the Code the regulations regarding tres-
pass upon the imperial highways or roads.

^^ No person shall presume to travel on the roads or cross
the bridges which are expressly provided and reserved
for the use of the Emperor except only such civil and
military officers and other attendants as immediately
belong to his Majesty's retinue, who are in consequence
necessarily permitted to proceed on the side paths thereof.
All other persons, whether civil or military officers, sol-
diers, or people, who presume to travel on the roads or to
cross the bridges aforesaid, shall be punished with eighty
blows.''

This ancient decree would have closed the ancient
highway between Hsian and Peking by reason of its
being specially repaired for exclusive imperial use during

LAND TfiANSIT 823

the royal return, but the Empress Dowager's clemency
prevented any harshness being shown to those accustomed
to make use of it.

Another imperial highway is that from Peking to the
western Mausoleum and Ancient Ming Tombs, where
the Emperor travels at the time of the ^^ Festival of the
Tombs," and this highway is always kept in good con-
dition.

The roads of Chili, both within and outside the Great
Wall, running north, northwest, and west, and southwest,
are reasonably good for a country not boasting of roads.
That to Yungping and Shanhaikwan and thence via
Einchow and Hsinmintun to Mukden and Kirin is a fine
trade route, except during the summer floods, on the stretch
which crosses the valley of the Liao Ho. The branch
of the same road going north to Tsitsihar is broader and
better, but cannot boast the same patronage from traders
and carters, though they number many thousands at the
end of the year for each route ; road traffic cannot be
carried on for more than nine months of the year in
Manchuria and eastern Mongolia.

A branch of this road strikes off from Yungping and
meets the Peking-Hsifengkow road at the latter place,
which is the gate in the Great Wall near the waters of
the practically unnavigable Lau Ho (Blue River). This
road passes from here on to Pah Eow or Ping Chuen
Chow and thence throws out branches to east, north, and
west, the latter of these going to Chengtefu, the capital
of the Jehol, and thence on to Fengninghsien and the
Dolonor, Ta Lama Miao, or Great Lama Temples, in the
Geshirten district of Mongolia, dividing here again into
four flourishing Mongolian transit routes, where continu-
ous lines of camels may be met crawling along at little
over three miles an hour and sometimes at not so rapid a

824 CHINA IN LAW AND COMMERCE

pace. . There four roads lead, (1) to Urga, Kiaktah, and
the Baikal ; (2) to Borza and Nerchinsk ; (8) to the Dalai
Nor and Argun head waters; (4) to Khailar and the Arg^un
head waters. A branch of the Urga road» which is a
great tea and camel's-wool route, passes the Ulan Nor and
thence through western Gobi to the south of the Khangai
range.

The middle road from Pah Kow or Ping Chuen strikes
north to Chefenghsien, where it in turn divides, — a branch
going west along the Shilikaho until it reaches Liang-
pootien, then south of the Imperial Hunting Park, Wei
Chang, to the Dolonor, while another branch follows to
the waters of the Liao Ho northeastward for eighteen
miles, and then strikes in the same direction across
undulating plains as far as Hsin Chang, where it crosses
the Sungari on its way to Harbin; and this for many
centuries has been one of the most fainous military and
commercial roads of the Empire. It is open practically
the whole year, as it crosses most of the waterways ex>
cept where it follows the head waters of the Liao for the
above-mentioned eighteen miles. There are numerous
rich ti-ading towns along the road and an immense popu-
lation engaged in grain-raising, distilling, bean culture
and bean-oil and cake manufacture, camel's-wool manu-
factures, horse and cattle raising, and many other remu-
nerative industries.

The third Ping Chuen road passes east by northeast
to Ching Chienhsien, Chao Yanghsien, Hwangninghsien,
and then joins the Shanhaikwan-Hsinmintun road at the
latter place. This is an important trade road for carrying
the mineral products of Pechili through Ping Chuen Chow
to the capital, and, as a result of the valuable traffic con-
ducted over it, the hills in the vicinity, at times of dis-
turbance like that of 1900, become infested with bandits.

LAND TRANSIT 825

The native tribes of nortlieast Mongolia are generally
nomadic horse, sheep, and cattle raisers, or hunters and
carters. They are the best carters and caravan runners
in China, being hardy and knowing no fear. This being
their favourite pursuit, they leave the cultivation of the
soil to the numerous industrious Chinese settlers.

Another road from Peking passes Tsunhua, Miyuen,
through the Kupehkow in the Great Wall, and passing
Luanpinghsien reaches Chengtefu and sends out two
branches, one direct north to Liangpootien and the other
by the Yesuiho (continually flowing river) to Tungtapao,
the military station to the east of the Wei Chang. This
road and its branches are the imperial highways to the
imperial palace of Jehol at Chengtefu and to the imperial
hunting preserves known as the Wei Chang. The journey
to Chengtefu is supposed to take five days, but even
when carts go also, it can be done in three days by
forced marching. It is very hilly, but the highway is
not in the usual ruined condition, though of course it is
not all that could be expected from a royal route. How-
ever, it suits admirably the style and methods of Chinese
travel. Should the very important towns of Jehol or
Chili north of the wall be opened to foreign trade, these
roads will have an enhanced interest. In connection with
all the roads north of the Oreat Wall one is tempted to use
a striking phrase of Alexander Hosie : ^^ Carts are the
railway carriages, trucks, and vans of Manchuria.*' No
expression could better illustrate the conditions of transit
in Manchuria and Mongolia.

Since the time of the occupation of ChiU by the allied
forces in 1900 many exploring parties, both military and
civil, have journeyed in the regions to the north of the
Great Wall. Their labours have resulted in giving to the
world clearer ideas of these regions, in respect both to

826 CHINA IN LAW AKD COMlfESGB

history and geography, and to commercial conditions. In
no way have they done better work than in giving us
some ideas of the trade roads and of the advancing
commerce along these highways. The most interesting
reports regarding the Mongolian routes have been given
by Messrs. C. W. Campbell, C.M.6., and 6. J. Kidston,
of H.B.M.'s Consular Service. The latter, writing of the
section of the road immediately north of the Great Wall,
in the direction of Fengning, describes it as ^^ wonderfully-
good," as does Major H. Goold- Adams, C.M.G. The
passes are low but very steep. This route abounds in
undeveloped mineral beds, the coal being particularly
good. To the north of Fengning there are large areas of
rock crystal, some pieces of which weigh over two hun-
dred and seventy pounds. Native gold is frequently dis-
covered associated with the crystal. The coal extracted
by the natives of the district is that which outcrops in
the hills in irregular or futed seams, is bastard or hydra-
cious, and in consequence poor in quality. The roads
from Fengning to Dolonor pass through beautiful canons
and narrow, wooded valleys (the wood being mostly birch,
fir, and oak), then through defiles leading to stiff moun-
tain passes, all easy of passage except the last. There
is a gradual climb of close upon four thousand feet in
altitude to the undulating grass plateau on which the Ta
Lama Miao or Dolonor is situated. The priests of the
district have as an industry the breeding of the so-called
Peking pug dogs and Chinese sleeve dogs, a good specimen
of either fetching as much as $1000 (Mexican) or £100.
They also breed the large, black, curly-haired Mongolian
dog, the skin of which obtains a high price on the London
market. The Dolonor itself is about four thousand feet
above sea-level, and the immediate vicinity of this squalid
home of the filthy Lhama (Lama) is nothing but the bleket%

LAND TBAN8IT 827

of sand on which rest numerous camel caravans. The ani-
mals of one pack frequently number as many as thirty.
The first and the last animal carry deep-toned bells, so
that if the linking rope severs, the driver is at once made
aware of the accident by the absence of the bell in the rear.
Besides the camel traffic a large amount of carrying is
done on large ox-wagons or carts, some two and some four
wheeled. It is not an uncommon thing to see at the
Dolonor, as at Chefenghsien, large merchant inns, that is,
merchant stores with an inn attached. These are kept
by keen Chinese for the benefit of the large traders who
come in from great distances to see to the disposal of their
wares in these market centres. In the yards of these inns
sometimes three or four hundred carts are standing, while
all around at the feeding troughs are the mules, ponies, and
other draught animals. At the first streak of dawn, if
not before, one is awakened from his slumbers by the
shouts of muleteers or drivers as they cry to one an-
other while getting ready for the day's journey. They
seem to come in at all hours of the night, and after an
hour or two of rest and feeding the animals, they take to
the road again.

There is a general impression that the Dolonor is a
great horse-breeding centre, but it is only a great fair, at
which the horses are collected from districts fully one hun-
dred miles distant, and the same is true of the great num-
bers of sheep and cattle gathered there. Most of the
Chinese of this district are Mohammedan. They are
about the most businesslike and energetic Chinese to be
met with. The lower order of Mohammedan Chinese are
unmitigated rascals, and though serving their employer
well, rob the country folk on all sides. In spite of this
they are the best guides and body-guards the foreigner
can secure for travelling in Manchuria and Mongolia.

828 CHINA IN LAW AND COMMERCE

Mr. Campbell reached the Dolonor by the Peking and Kal-
gan road. Kalgan, situated on the Great Wall to the north
of the province of Chili close to the Shansi border, carries
on a greater caravan trade than does the Kupehkow gate,
owing to the better road between it and the capital and to
the fact that five great Mongolian trade routes converge
on it. It is to be regretted that this town, and some
of the other gates in the Great WaU are not opened
as treaty ports permitting of foreign residence. The im-
portance of foreign trade doors on the natural trade routes
of the country cannot be overestimated and should not be
lost sight of by the home governments or the ministers in
Peking. In this connection Mr. Campbell says : ^^ Kalgan
as a residence for foreigners dates from the early sixties,
when firms interested in the tea trade took advantage of
the special privileges conferred by the Russian treaty of
1860 and established agencies in Yuenpaoshan to facilitate
the transport of their teas across the Gobi to Urga and
Kiakhta. Since 1865 Kalgan has been a prominent station
of the American Board of Foreign Missions, and the oc-
casional residence of English and Swedish missionaries,
whose labours are specially directed toward the conversion
of the Mongols." From Dolonor Mr. Campbell took a
circuitous route, evidently not one of the great China-
Siberia trade roads, as there seems to have been little
traffic and less interest until he reached Urga. Here
there is a Russian consulate, the nucleus of a Russian
settlement, and a considerable Russian trade. There
seems to be no other western nation starting settlements
here, in spite of the most favoured nation clauses in the
treaties with China.

Mr. Kidston's road lay to the west of that travelled by
Mr. Campbell, and was evidently the one better adapted to
the advancement of foreign trade in these regions. This

LAND TRANSIT 829

would be very great, were some of the large trade centres
opened to the residence of European merchants and com-
mercial agents, who could enter upon business partnerships
with native ti*aders to their mutual advantage.

With the spread of Chinese agricultural migration in
the virgin districts of Mongolia and the Jehol, and with
the construction of a railway between Peking and Kalgan,
these Mongolian trade routes will become better known,
and their advantages for foreign trade will daily become
more apparent.

The recent history of Manchuria has brought that coun-
try very much into public notice. The march of armies
has revealed to the sit-at-home trader that in the garden
of China there are roads, and very excellent ones, in exist-
ence, which have, however, been very greatly improved
under the military domination of Russia. These roads are
a commercial asset very much valued by the Chinese
trader in his dealings with the country northeast and east
of the Liao Ho during the autumn, winter, and spring.
The flooded waterways serve his purposes during the
summer months. Thousands of carts, both large and
small, with great teams of oxen, or seven or eight ponies
or mules, cover these roads during the above-mentioned
seasons. They bring the heavy products of native agri-
culture and industry to the navigable waterways, there to
be stored until it is possible for native river-craft to carry
their quota to the nearest distributing centre associated
with foreigners, and return with what the foreigner has to
vend. In the hill-country, where stone is to be procured,
the roads would compare favourably with any of foreign
construction ; but in the river valleys and plains they are
execrable mud routes, sometimes a quarter of a mile wide.
The deep ruts cut by the wheels of the style used on the
carts, are a great danger to travel, as a cart is liable to

880 CHINA IK LAW AND COMMERCE

stick on one side, and then turn over with the weight of
its contents. As Hosie says, ^^ the nature of the roads has
led to the building of carts capable of withstanding the
bumping and jolting to which they are constantly sub-
jected/' But it is the style of cart used which has brought
about a great deal of injury to the roads.

The old military road from Heichang to the Yalu at
Kiulienchang and Antung is as fine a road as is to be met
with in the country, and is much used for the lumber trade.
Such heavy traffic has the effect of cutting up the road,
but it has generally been kept in good repair by the
Chinese officials. It is joined at Shataokang by another
excellent section from Liaoyang, which, however, has to
cross very high mountain passes south of the great pass
of Motienling (twelve thousand feet high), which is itself
on the broad road from Mukden to Fenghwangtien and
Antung. Another fine trade road — infested, however,
with hunghU9z (red-beards), or bandits — is that from
Mukden east through Tsiaotzetien, Kien Changmien,
Hweijenhsien, to the head waters of the Yalu and the
Korean town of Chasong. The broadest, best, and most
thickly populated route from Mukden to northeast Korea
is that through Fu Shun, Sarlin, Singking, Hwangtsing-
men, Tunghuahsien, Maochr Shan, and south of the Chan
Pai Shan to Samsui and Kap San. All these roads east
pass through one of the richest mineral countries in the
world ; and this country has, by reason of its wealth, excited
the g^eed of two powerful military nations, who, since
the last decade of the nineteenth century, have made
every attempt to seize it for their own, finally plunging
into a devastating war, which, among other untoward re-
sults, has crippled the foreign trade of China just at a
time when commercial men were looking for a commercial
millennium in the Far East.

LAND TRANSIT SSI

The Mukden^ Kirin, Hanchun trade route is a most
prosperous and busy one for carters, and acts now as a
feeder for the Chinese Eastern Railway. It is daily
growing in importance, with large towns increasing in
size and number through the influx of Chinese immigrants
from Chili and Shantung, whose surplus thousands find
here a virgin field for their labours and trade. These
settlers are daily ousting the old Manchu owners of the
soil, and by an extraordinary trade evolution are conquer-
ing, by commerce, industry, and agriculture, the land of
their military conquerors after about three centuries of
subjection.

All the northern and northeastern roads of Manchuria
are camel as well as cart roads. The camels, carrying
loads of one thousand to twelve hundred pounds, cover
a distance of twenty miles a day. That from twenty to
thirty of these camels form a caravan, of which fifty
may be met in a day's march, g^ves some idea of the trade
of Manchuria and Mongolia with China along the over-
land routes. In the flat country a stage for a cart is
thirty or thirty-five miles a day, and, with from six to ten
ponies or mules, it carries a weight of one and one-half to
two tons. The cost of camel transport in these regions
comes out, roughly, at about 7 to 10 cents, or 1^ to 2d.
per ton mile ; but by mule or pony cart it is from 4 to 7
cents, or a little over ^d, to a little under 1^. per ton
mile. In the stretch of country between the Dolonor
and Liangpootien and Hatah (Chefenghsien) and thence
to Mukden large quantities of buckwheat and the extraor-
dinary large single-husk oat of Mongolia (TFet ehang yu
mii or Wei Chang oil grain) are seen. This oat is particu-
larly free from damping, and should be introduced into
foreign countries. Most of the grains, owing to the diffi-
culties of transport, are converted in the large grain stores

882 CHIKA IN LAW AND COHlfEBCB

into native spirit, as this is the most remunerative waj of
transporting the products of the field. The spirit is made
in pot-stills of a primitive style, and, as there is no such
process as redistillation, the yield is a vile decoction, full
of fusil oil, sold at a few cents a bottle. Were any for-
eign firm to invest capital with a Chinese grain merchant
in these regions, and distil on scientific principles, he
would not only reap a remunerative reward from the
native trade, but could put the best whiskey on the Euro-
pean or American market at one-third the present price,
in spite of duties and freights, such is the cheapness of
the best classes of alcoholic grains and labour.

Another industry that might be taken up by foreigners
associated with Chinese is that of an abattoir and canning
establishment in the regions where cattle can be procured
at less than $20 (Mexican) or £2 a head, where at pres-
ent the cattle are driven overland from the fattening
regions, always falling off in condition with the length of
the road. If a bone-tallow factory and tannery were
associated with an abattoir at Hatah (Chefenghsien}, a
great boon would be conferred on this immense trade
centre, and the founders would be repaid. Similar estab-
lishments at Liangpootien and Dolonor would have a like
result.

In the rolling plains to the north of Hatah over one
million head of cattle and thirty thousand sheep are
reported by natives to be raised annually, and these have
to travel overland to the consumption centres, south
of the Great Wall, for a market, though the Mongols,
taken generally, are a meat-eating people.

The military roads of Shansi and Shensi are to this day
very fine, being broad, well drained at the sides, and
planted with trees. They wind through picturesque
valleys and over mountainous passes, and their route is

LAND TBAK8IT 888

lined with the remains of ancient centres of industry and
trade. These are only waiting for the lifting of the alien
pall, which has suppressed the energy of the ruled through-
out China, to resume their historic greatness. The Peking-
Shansi road dates back two thousand years, and like all
the roads of the western provinces, shows skill in concep-
tion and execution. Portions, however, have degenerated
into river channels and cultivated areas. The continua-
tion of this route into Szechuan offered considerable diffi-
culty, particularly the sections over the Paishang (White
Pass} and the Hwai River. But the skill of those early
engineers overcame all difficulties in a manner well set
forth in the Penny Cyclopcedia: **For the difficulties it
presents and the art and labour by which they have been
overcome it does not appear to be inferior to the road over
the Simplon."

Williams gives a fine description of this work. **At
one place on this route, called Linai, a passage has been
cut through the rock and steps hewn in both sides of the
mountain from its base to the summit."

Note. — I have been materially assisted in the preparation of this
chapter and the chapters on water and railway transit by Mr. Charles R.
Maguire, a mining engineer, whose extensive travels in China have
qualified him to verify many of the routes described. It gives me
pleasure to make this acknowledgment.

CHAPTER XIV

WATER TBAK8IT

Every facility that law can give is permitted under
passport to those desiring to travel on land and water in
the interior of China, and consequently it is of more than
passing interest to investigate the natural and artificial
facilities afforded for travelling or trade between different
towns, districts, and provinces.

If the natural facilities afforded by the navigable water-
ways be first considered, then it may be said that China,
of all countries in the world, is most favoured. In this
direction Williams's phrase, ** The rivers of China are her
glory, and no country can compare with her for natural
facilities of inland navigation," puts an accurate apprecia-
tion of the advantages of the Empire in the briefest and
neatest of descriptive word-painting.

To the Chinese mind the history and geography of the
country's rivers is of far more importance than the age of
the Empire or its numerous dynasties.

It is unfortunate that home exporters and their agents
in China know so little about these great rivers and water-
ways which offer such facilities for the advancement of
their special interests, and I therefore purpose giving a
short description of them in the order of their importance,
and of the trade centres. which they feed.

The Yangtse River is navigable for river boats for fully
seventeen hundred miles out of three thousand miles of
length. At all seasons it is navigable for the greatest

334

WATEB TBANSrr 835

ocean-going steamers for two hundred miles of its length ;
that is to say, from Nanking, once the southern capital, to
its mouth Kiang-kou. The river may be considered uni-
form and deep in its lowest sections, t.e. between Hankow
and the sea, but is liable to floods which raise it from
thirty to fifty feet above normal or winter level.

In the province of Kiangsu few towns are near the river,
as they would be liable to inundation during the summer
floods. Of course there are large commercial towns, such
as Chinkiang, or Nanking, of great importance to foreign
trade, on its banks, but these are generally where the
banks are more elevated.

Regarding Chinkiang, situated at the junction of the
Grand Canal and the Yangtse River, Mr. Justice Bourne
wrote in 1898 : ** Conditions are as favourable for the ex-
tension of foreign trade here as in any place we visited in
China." But with regard to the area of the concession he
says : ^^ The limit of expansion seems to have been reached,
and it would be much to the advantage of both her Maj-
esty's subjects and for the natives if a settlement were
marked out that would give room for manufactories and
the preparation of raw material exported." At the same
time he wisely advocates that this system, rather than
that of concessions, be adopted at the treaty ports for the
reasons stated, since otherwise British (foreign) mer-
chants will never settle up country, and ^^ without them
the country can never be opened up to our trade."

Wuhu, in Nganhui (Anhwei),has a considerable trade
in piece-goods, but Kiukiang has even greater promise of
trade expansion with the interior of Kiangsi, where shal-
low-draught steamers are employed on the Poyang Lake
and the waterways, Kiukiang and Kanho, which drain into
it. Two feet six inches of water may be relied upon the
year round as far as Nan Chan Fu, and never less than

886 CHINA IN LAW AND OOMMEBCE

two feet as far as Eian on the Eanho, but as much as
twelve feet can be obtained during summer and early
autumn to a point (Kan Chow) much farther south; a
total distance of over three hundred miles navigable for
small craft. Conservancy wotdd increase the navigation
prospects and the productiveness of the country bordering
the Kan. But in Kiangsi innumerable likin barriers exist
to the crippling of foreign trade ; these, however, accord-
ing to the American and English treaties with China, are
to be removed, when considerable expansion may be ex-
pected.

Above Hankow the towns on the Yangtse lie nearer the
river, the banks of which, being generally higher than
those near the mouth, keep the floods within limits,
and prevent inundations affecting the towns. Besides
this father of waterways there are its large and only
slightly less important tributaries, all more or less open to
steam navigation by vessels of the river-steamer type.
One of the largest, and for trade purposes the most useful,
of these is the Kankiang, in the province of Kiangsi. By
its means the Yangtse-carried goods pass south to Kan
Chow, a distance of over three hundred miles direct, by
vessels which vary in carrying capacity from four hundred
tons up, and which load from the big river steamera at
Kiukiang, a treaty port at the junction of this river with
the Yangtse. The next tributaries of importance are the
sister rivers, the Siang and Yuan, which empty their
waters through the Tungting Lake, and open navigation
facilities to small river boats, by which may be tapped
the trade of the rich and thickly populated province of
Hunan and the more distant mineral and grain resources
of Kweichow province. The products of these two
provinces are reshipped at the treaty port of Hankow, at
the junction of the Han and Yangtse rivers, a city well

WATEB TBANSIT 837

described by some writers as " the f ature Chicago of the
eastern worid. "

The great tributary from the north, the Han River, is
the next in importance, not only from its navigability, but
from the richness and prosperity of much of the district
through which it flows, the province of Hupeh, rich in iron,
copper, coal, zinc, lead, antimony, platinum sands, black
tin, nickel, cinnabar, silver, and, in places, gold. On the
river Han there are large and important towns in which
considerable native manufacture is conducted, and which
are thus rendered most desirable and profitable markets,
such towns as Laohokou, 140,000 inhabitants; Fanchen,
100,000 ; and Hsiang Yang, 40,000. The traffic on this
river is mostly by junks, or lighters towed by small
steamers, though shallow-draught steamers, capable of
carrjring a good deal of freight and many passengers,
can and do ply on its waters. The current is very strong
in summer during the floods, and consequently for up-
stream traffic what is required in a steamer is power rather
than speed.

The next tributary of any navigable importance is the
Wukiang, which taps the more important trade of Ewei-
chow province from the towns Sze Nau, Tsungyi, Hsih-
chiu, and Tating, as well as, indirectly, the capital
Euiyang. Small native-owned steamers and towed
lighters bring up and down the goods between these
towns and Chungking, population 1,000,000, the treaty
port at the junction of the Yangtse and the Kailingkiang,
which latter is an important tributary, little less im-
portant, commercially valued, than the Min River, which
joins the Yangtse farther west at Suif u, where there is an
average rise of the waters during the annual summer
floods of about forty feet.

Very large junks in the flood season ascend the Min

888 CHINA IK LAW AKD COMMEBCE

River as far as Kiating, at the conflaence of the tributary
Tungho, about eighty miles above Suif u. Above this, how-
ever, irrigation works have destroyed the navigability of
the river for large boats, but have caused considerable
increase in transit facilities on innumerable creeks and
canals for small-boat tra£Bc, particularly in the immediate
vicinity of the provincial capital, Chengtu, where many
of these canals connect the Chungkiang with the Min.
Chengtu, dating back to the third century before Christ,
has a population of 600,000, more or less, but there is no
reliable estimate, although these figures may be taken as
fairly accurate. If to this be added the report by Consul
Litton, that ^^near Cheng^tu, for forty miles in every
direction, the country is one huge village,*' which may
account for his estimating the population as 1,000,000,
then the usefulness of these canals for trade purposes
will be readily appreciated.

Navigation is carried on at times of flood as far north as
Mao Chow, in river boats of six or seven tons* capacity,
and to near Sungpan in very shallow boats drawing nine
inches loaded. This town is a fairly prosperous one, the
best merchants being Mohammedans. Enormous flocks
of sheep are raised in this vicinity and sold at about
$1 to $1.25 (Mexican), say, 2s. 9(2. to@». 6<2., though when
bought in large quantities they may be procured at little
over 2$. per head, and thereafter their uncleaned wool
seUs at \d. per pound on the local market.

At Chungking the flood rise averages over sixty feet,
and it has been known to rise to ninety feet, while at
Ichang it averages thirty-five, with a possible rise to fifty-
three feet; at Hankow the average rise is over thirty
and sometimes exceeds forty. Between Ichang and
Chungking lie the Tangtse Gorges, where the floods may
rise above one hundred feet.

WATEB TBAN8IT 339

The Eailingkiang is joined close to Ho Chow, sixty
miles from Chungking, by the waterways Foukiang and
Kukiang, on both of which is carried on a considerable
junk trade, which trade would be vastly increased by the
employment of shallow-draught steamers or stern- wheelers.
Though there is no definite industrial enterprise at Ho
Chow, its trans-shipping trade, with a population of
60,000, is extensive, and where there is such a trade, there
is generally a large boat building and repairing business.
It is a great coal mart, in which mineral there is an ex-
tensive trade, as the coal is of good quality, though small
and dusty, owing to the primitive mining methods adopted
by the natives. The main river, Railing, above Ho Chow,
is broader than below, and traffic is greatly impeded by
numerous detrital sand-banks scattered over the stream.
These banks are bound together by a coarse, rank weed,
and after a time form islands, or part of either river bank,
which can be and are cultivated by the natives.

The ancient market-town of Shun Ching, with a popu-
lation of 40,000, is situated in the midst of a silk district
on the Kailingkiang, about sixty miles north of Ho Chow ;
a fair amount of boat traffic is carried on in boats whose
carrying capacity is about seven to ten tons, a very few
carrying more than this. Another sixty-five miles farther
north is the salt city of Nanpu, the salt being transported
in boats to the central market-town of Paoning, twenty
miles farther north. This latter city with a population of
over 20,000, a great proportion of which is Mohammedan,
is undoubtedly prosperous.

Kuang Tuen, about two hundred and eighty miles from
Chungking, near the junction of the Pai Shui and Kailing-
kiang, may be considered the limit of navigation, as the
boats or junks which ply so far north have at most a
carrying capacity of three tons, though their actual start-

840 CHINA IK LAW Ain> GOMMEBCE

ing-point is from the borders of Eansu, at a town called
Pai Shui Chiang on the Pai Shui Ho, about fifty-five to
sixty miles away. On this latter very shallow moun-
tain stream may be seen a few shallow-draught boats
and rafts propelled by poling or tracking.

The Foukiang is navigable for junks of seven or eight
tons* capacity, for about one hundred and forty miles as
far as Tung Chuan, a large market-town in the midst of a
rice, millet, maize, and silk raising area, and having large
flocks of sheep grazing on the adjacent hills. As the
natives know or eare nothing about sheep-washing, the
wool is very dirty and consequently does not command
so large a price as its long and fleecy fibre would justify.
This town is a market for the raw silk brought down in
shallow-draught boats from Lungan.

Of all the treaty ports on the Yangtse and its tributa-
ries Hankow is the most important, if exception be made
for Shanghai, which is not on the Yangtse but on the
Hwang-pu, a tidal creek to-day, but formerly one of the
many mouths of the Yang^. If Shanghai is the empo-
rium for ocean-carried goods, Hankow has a similar posi-
tion for all goods moving along the great river between
east and west, and for the trade overland between north
and south. Next comes Kiukiang, then Chinkiang, after
which must for the present be placed Wuhu, until such
time as it regains the important position it held prior to
the Taiping rebellion. Then comes Ichang, the place of
trans-shipment from steamer to junk, followed closely by
Chungking, where the river is three hundred yards wide
and has an average of thirty feet in depth.

Mr. Justice Bourne, in his consular report, 1898, says,
** Hankow is the greatest centre of distribution in the
Empire and must have a great future when China's re-
sources begin to develop." The greatness of Hankow

WATBB 7BAKsrr 841

is only in its infancy. The countries supplied with
foreign goods from Hankow are, (1) the northwest, in-
cluding the provinces Hupeh, Shensi, Kansu, and even
Kashgaria ; (2) the southwest, including Kweichow and
Hunan, and, to a lesser degree, Szechuan.

The Blackburn Commission considered Hankow, owing
to its position and proximity to the valuable waterways
mentioned above, the Siang and Yuan rivers, to be the
most suitable centre from which to develop the Lancashire
trade with the province of Hunan, which province they
considered one of the most promising fields in China,
owing to its richness in useful minerals, in agriculture,
and above all in the hardiness, enterprise, and industry of
the inhabitants. ^^When the minerals are worked, this
may well be the richest region in China." This commis-
sion strongly recommended the opening of Hsiangtan,
where boats drawing three feet can arrive at all times, as
the most suitable treaty port for Hunan, as at that time
the province was without that convenience for trade. An
immense trade passes between Tungting Lake and the
Yang^e.

On the whole, no river in the world offers the advan-
tages to navigation in area afforded by the Yangtse and
its subsidiaries, ** which render the whole basin acces-
sible as far as the Yalung." In one of Mr. Justice Bourne's
reports, 1898, he states: ^The Yangtse regulations to
which foreign trade and shipping have to conform are
utterly obsolete and require revision." If foreign trade
demands such revision, then no time should be lost in
bringing it about, and the governments should be held
responsible for criminal neglect until this has been
accomplished.

Another important natural waterway, from the point of
view of the merchant, is the Canton or West River, Hsi

842 CHINA IK LAW AKD COMHBRGE

Kiang^ which rises in the east of the province of Yunnan
and, having meandered at will through the valleys of this
large hut undeveloped province, enters the populous
province Kwangsi, at its northwest corner, near Loping,
and with an irregular course flows in a direction nearly
southwest through the province until it enters Ewang^-
tung near Wuchow. It empties into the sea, one hundred
and eighty miles farther east, where it is known as the
Chukiang or Pearl River. This river, with its tribu-
taries, drains a region which cannot fall short of 130,000
square miles, — nearly all the country east of the Yung.
ling and south of the Nanling ranges.

By the Burma Frontier Treaty the treaty ports Sam-
shui and Wuchowfu were opened in 1897, and the follow-
ing ports of call were established on this valuable trade
river, Shinhing, Kanchuck, and Kongmun.

The river is navigable for three hundred miles of its
length for river steamers of large carrying capacity, and
by small boats for about nine hundred miles on the Ku
Chow River, after which rapids are met impeding any
navigation. Boats of three-feet draught reach by the Ku
Chow River almost to the borders of Kweichow province ;
but above Hsem Chow there is the Lutau rapid imped-
ing steamer traffic until the submerged rocks shall be
removed, after which it should present no difficulty.
Compared with other rivers of China, three hundred miles
of navigation does not seem much, but that great dis-
tributing centre, Hongkong, gives it a very great impor-
tance as a commercial river which enables the teeming
populations of the " Two Kwang " provinces to obtain by
cheap water transit the unloading of the western products
in that British territory.

The numerous likin barriers on this river have been
brought to the notice of merchants by the Blackburn

WATBR TRAK8IT 848

China Commission in their report, 1898. The report says :
^' It would not be using too strong an epithet to describe as
criminal the policy that, so far from utilizing to its utmost
capacity as a medium of communication the waters of such
a river as the West River, by a pernicious fiscal system so
harasses merchants that they are compelled to get their
goods to the large towns on its upper waters by a cir-
cuitous overland route/' This barrier to the develop-
ment of British and American as well as European trade
generally no longer exists, thanks to the new treaty
between the United States and China by which likin
is abolished, its place being taken by an increased mari-
time customs duty.

The same commission, in its report, gives a most inter-
esting item of commercial importance with regard to
transit facilities as follows: ^^It is a fact not generally
known and one that illustrates vividly the wonderful
waterways of the interior of China, that it is possible to
start from Shanghai and proceed by boat up the Yangtse
to Hankow, thence across Hunan to the head waters of
the Siang River, where a canal is cut uniting with the
head waters of the Kuikiang, past Kuilin, the capital of
Kwangsi province, down to Wuchow, Canton, and Hong-
kong, — a round tour of some fifteen hundred miles by
water the whole way." The importance of this water
communication cannot be exaggerated, and becomes. ap-
parent when it is stated that by this means merchants,
carrying on business in the districts or prefectures in the
south of Kiangsi and north of Kwangsi, are enabled to
draw their supplies by water from both the great dis-
tributing centres, Hongkong and Shanghai, with com-
parative ease, and such routes being competitive tend to
reduce the cost of transit to these remote regions. The
existence of the above' route has long been known to

844 CHINA IN LAW AND COMMBBCB

travellers, bat may come as a revelation to the treaty-port
trader.

The Amur, Sagalien, Kwangtung, and Hehlungkiang^,
under its various names, — generally typical of its ^ black
water/' which is the distinction the Chinese bestow on a
clear river, in contradistinction to a yellow or red river,
names typifying muddy waters, — is of course one of the
great natural waterways of China, but its use as a com-
mercial highroad is minimized by the fact that it comes
within **' the great frost-line," that is to say, it is closed to
commercial traffic by the prevalence of ice from November
until about the middle of April, although in favourable
years it is open at the end of March ; this is not the rule
but the exception. This means that traffic is really
restricted to the months from May to October.

The Amur or, as it is sometimes spelled, Amoor, with its
great tributaries the Ingoda and Argun, its other tributaries
the Shilka, Ussuri, and Sungari with its tributaries Nonni,
Hurka, Mayen, Tunni, and Hulan, is one of the most won-
derful, most imposing, not to say, most historic waterways
in the world. It waters an agricultural Garden of Eden in
its course east from Baikalia through old and new Man-
churia, but little use has been and is made of the power of
its current to manufacture such products of the earth as are
cultivated in its vicinity. In parts of its course the bed
gets very broad and becomes studded with islands and
sand or mud banks, which form a serious barrier to naviga-
tion. The regions to the south of this river are about the
richest in the world in mineral resources, forests, game,
etc., and when once it is decided to make the earth yield
these fruits of creation, then the importance of the Amur
and its subsidiary streams will become better known to the
world in general. The navigable portion of this river, and
that of its great tributaries, combined, would amount in

WATBB TBANSIT 345

the summer and autumn to between two thousand and
three thousand miles. For many years its interest and
importance has been mainly political rather than commer-
cial. On the tributary, the Sungari, navigable for six
hundred and forty-three miles, a considerable native traffic
is conducted from Kirin, scarcely one hundred miles from
the mountains in which it rises to the south, to its junction
with the Nonni, one hundred and twenty miles down the
river, that is to say, north-northwest of Kirin. This
section of the river has a navigable channel about nine
hundred yards wide and over twelve feet deep at ordinary
times but during the summer torrents and floods both the
width and depth are considerably increased. This in turn
gives place to a bend running northeast for a short dis-
tance where the bed is over a mile and a half wide, with a
general depth of three to four feet ; but, according to
native accounts, it is intersected by an intricate navigable
channel about eight feet in depth. From Harbin to
Sungsing, at the junction of the Hurka and Sungari, the
river narrows to about a mile or three-quarters of a mile
in width and has a navigable channel of eight to ten feet
deep at lowest water level. From this on, to the junction
with the Amur, the Sungari is one of the most beautiful
rivers of the world, and is a fast-running, navigable water-
way through varying and picturesque scenery. With the
one exception of the short strip above mentioned, the river
from Kirin to Novaia offers enormous advantages to tran-
sit enterprise, as, for instance, to shallow-draught river
steamers and powerful tugs and launches for towing
heavily laden lighters and native craft.

Harbin, on the right bank of the Sungari in the province
of Kirin, may be said to be a town of mushroom growth,
very much like Dalny in this respect, and has replaced the
old market town and caravan exchange on the left bank

J

846 CHINA IN LAW AND COMHERGB

of the Sungari, namely, Hulantien. It is a Russian town
about one hundred and eighty miles within the Man-
churian frontiers, and in the plan of its construction, its
artificial facilities for trade, the concentration of the
various markets within its compass, and the numerous
industrial works, such as railway workshops, sawmills,
flour-mills, etc., which have been called into existence
within a comparatively few years, it calls for the fullest
admiration of the Russian pioneers who conceived and
achieved this colossal work in so brief a time. There
are really two towns here, a Chinese and a foreign, with
an aggregate civil population of little less than 200,000.

Between this most important town and Nuan and Har-
barovsk the Chinese Eastern Railway Company (Russian^
have a fleet of three large steamers and about twenty tug-
boats engaged in towing heavily laden lighters, and even
this fleet can only cope with a very small percentage of
the transit trade.

Kirin is a walled town, stretching for fully two miles
along the left bank of the Sungari, and is the capital of
the province of the same name. It is a great boat-buUd-
ing centre, possesses an arsenal, powder-mills, has a great
local and district trade in charcoal, though large coal-fields
exist in the neighbourhood, which are only burrowed or
tunnelled in the usual Chinese way, where outcrops are
found amongst the hills; this class of coal, being surface
material, is rolled and inferior, and burns rapidly. Con-
sequently there is the general impression that Kirin coal
is not worth mining, but there could not be a greater mis-
take, as borings prove the existence of hard coal little,
if at all, inferior to Cardiff coal. Iron abounds in the
neighbourhood, and there are numerous native iron-works
in the town.

An observant traveUer, Constd-General Hosie, estimates

WATBB TRANSIT 347

the population of the capital city at about 100,000,
but the outlying suburbs increase this total. Along
the valley of the Sungari, on its passage through the
Kirin province, may be seen numerous native gold-work-
ings, carried on as alluvial washings; and from the
turnover, with the primitive appliances at hand, all for-
eign miners who have travelled in these regions are
agreed that it must be one of the richest districts in the
world as a gold-mining area. Hosie gives an account of
Chinese information showing that one native company
produces, as the result of a few days' work, gold to the
amount of three pounds avoirdupois. He also states
that Kirin coal is sold in the capital at from six to
twelve shillings a ton according to quality. Fine coal is
produced about twenty-five miles from Tungchiang, which
is carted across to Kirin and is used on the steamers and
tugs on the Sungari and Amur. Lead, silver, and copper
are also worked, and the manufactured product trans-
ported over this waterway. A large transport of pine and
elm logs from the Chan Pai Shan (Long White Mountain)
and from the forests along the river banks, continues on this
river throughout the summer months ; the timber, being
felled in late autumn and winter, is cleaned and ready for
transport to Harbin or farther north and northeast as soon
as the ice breaks and the river is open to navigation.

With the exception of the aforementioned towns the
only one of importance in the valley of the Sungari is
Tsitsihar or Puk'usi on the Nonni, the large tributary join-
ing the Sungari on its left bank. This town is the capital
of the Hehlungkiang province. The river on which it
is situated is navigable from this town to the Sungari by
large junks and towed lighters, and by boats of light
draught for another one hundred and eighty miles up-
stream as far as Mergen.

848 CHINA IK LAW AKD COHMBBCE

Tsitsihar itself was at one time a most important town
on the direct caravan road between the fur districts of
the Lake Baikal region and those of Korea round about
the Yalu and Tumen rivers. This importance was at one
time in a fair way of disappearing, but owing to the
construction of the Manchurian section of the ^^Trans-
Siberian railway" its ancient glory would appear to be
returning; sawmills and flour-mills have sprung up on
the banks of the Nonni in the immediate vicinity of
Tsitsihar, and the busy appearance of the streets, flooded
with industrious Chinese instead of the former slothful
Manchurian inhabitants, speaks well for the future mer-
cantile value of this city, situated as it is in a maiden val-
ley where there is little difficulty in raising grain or any
other crops. There are some camel's- wool carpet, camera-
wool felt, and bean factories, etc., in this town, completely
run by the ignorant Chinese. Such factones add to the
importance of the navigation of both the Nonni and Sun-
gari as feeders of the shipping traffic of the Amur.

The next most important tributary of the Amur is the
Shilka, which wends its way through valleys wooded with
pine, ash, elm, birch, and beech to the water's edge or
through deep-cut gorges where rock cliffs tower hundreds
of feet. As a natural waterway its importance can be
appreciated when it is said that in conjunction with the
Amur, these two form a stream navigable for steam traffic
for fully 2130 miles, that is to say, from Nikolaevsk at the
mouth of the Amur to Stretensk, and, according to Hosie,
sometimes as far as Metrofauor, which would add close
upon another one hundred miles to the navigable bed.
The navigable channel of this lengthy waterway is marked,
lighted, and buoyed, and the Russian government has
taken every possible means that engineering can recom-
mend, to safeguard navigation thereon and improve the

WATER TBANSIT 849

navigable bed. Most of the steamers that ply on this
river burn wood, of which there is an abundance on
either bank. Great piles of this fuel are noticeable at
the river stations. Of course coal could be used, but the
rich deposits in which Manchuria abounds have not been
developed sufficiently to meet the demand. The Shilka,
during the earlier weeks of May, is generally so shallow
that navigation is most difficult and uncertain, but later,
in June and July, when the water rises, vessels of from
six to ten feet draught encounter no difficulties. At all
times the narrows, from eighty to one hundred and fifty
yards wide, have sufficient water.

The Russian government has made most elaborate sur-
veys of the river and of the surrounding country. It is
to be hoped that here, as in many other parts of the
world, especially in America, tUlage may in time beat
back the frost-line.

The valley of the Shilka is an extensive horse, cattle,
and sheep raising area. The transportation of the live
stock is effected by means of broad, shallow-draught light-
ers, and sometimes by means of rafts — a clever device by
means of which the industrious Chinese bring both cattle
and logs to the markets and sawmills down the river.

Nearly all the towns on the Shilka consist of squalid,
wooden houses, and are filthy in the extreme. They are
of little importance, and many of them are only temporary
stations which serve the purpose of coaling or, properly
speaking, logging the passing steamers.

Very little less important than the Shilka is the sister
river, the Argun, navigable for a distance of four hundred
and sixty miles from its junction with the former. There
is a certain amount of historic importance attached to this
river, as in the year 1689 it was made the boundary be-
tween the Russian and Chinese empires in that portion of

350 CHINA IK LAW AND COMHEBGB

their adjacent territories. In Article I. of the treaty
it was stipulated : '^ The country south of the Shihtahsing*,
with all its rivers and streams entering the Amur, shidl
belong to China, and the country to the north of the
range with its rivers and streams shall belong to Russia.'^
Article II. provides: "The Ergune or Argun River
which falls into the Amur shall form the boundary. The
south bank shall belong to China and the north bank to
Russia." In all the subsequent treaties delimiting
boundaries in the years 1727, 1768, 1851, 1858, 1860, and
1881 the river Argun, or Ergune, is acknowledged as the
boundary of Manchuria on the northwest by both the sig-
natory powers.

The district watered by the Argun is naturally fertile,
but is practically uncultivated. However, large herds of
cattle, sheep, goats, donkeys, mules, ponies, Mongolian
camels, and Mongolian black curly dog^ raised by the
nomadic Mongols in this region are transported into Rus-
sian territory, and particularly into the Baikalia districts.

On the Amur itself there are a large number of pros-
perous towns which would act as distributing centres for
foreign goods were it not for the treaty of Aigun, 1858, the
first article of which declared the waters of the Amur, the
Sungari, and the Ussuri open to the navigation of Russian
and Chinese vessels only, thus excluding the vessels of
foreign countries. Whether this article of this treaty can
stand in face of the most favoured nation clauses of our
treaties with China and with Russia remains to be seen
when the development of Manchuria justifies raising the
question. As it is, the Chinese Eastern Railway (Russian)
with its subsidiary and allied companies maintains a fleet
of fully one hundred and twenty steam vessels of different
descriptions on the Amur and its larger tributaries. All
these companies are Russian, or under Russian control. I

WATEB TEANSrr 351

have dwelt at length upon the Amur, its tributaries, and
navigation, because the value of these waterways is, gen-
erally speaking, little known, but they bid fair in a few
years to attract world-wide commercial attention.

The river next in trade importance is the Peiho. Until
1900 steamers were able to navigate as far as Tientsin
only with great diflBculty. The untoward events of that
year, however, and the Tientsin Provisional Government
brought about the long-demanded work of Peiho conserv-
ancy. Since 1901 the work of conservancy has proceeded
apace, and in little more than three years three large cut-
ting^ have been made obviating the most difficult bends of
the river, and greatly facilitating traffic. Now coasting
and river steamers proceed up on the flood-tide and dis-
charge their goods at the Tientsin Bund. There is still,
however, the " heaven-sent barrier," or Taku Bar, which
acts as an impediment to traffic. The water on the bar at
low tide marks four to six feet, and consequently vessels
reaching it after the flood have but poor chance of cross-
ing — hence Li Hung Chang's expression, the ^^heaven-
sent barrier." Any vessels unfortunate enough to be
caught at the bar at low water must lighter their cargoes,
which increases considerably the expense of freighting.

It is a fact not generally known, or not generally re-
membered, in the midst of the rapid march of events in
China during the past half century, that Tung Chow, and
not Tientsin, was the great junk port for Peking in the
pre-treaty days, the Peiho being navigable for large junks
of one hundred to one hundred and fifty tons' capacity as
far as Tung Chow, distant only twelve miles from Peking.
Smaller river junks or sailing boats could at one time pro-
ceed up to Sunhua, or Shunyi, thirty-flve miles farther
north. This, however, was during the days when the
Heiho (Black River, from its freedom from brown mud)

i

852 CHIKA IK LAW AND OOMMSBGE

was a tributary of the Peiho (North River). Owing to
the damage annually done to the hinterland of Tientsin by
the floods, a French engineer was employed to report a
scheme of conservancy to Li Hung Chang. This engineer
stated that the trouble came from the great flood waters of
the fast-flowing Heiho, that by diverting the waters of this
river into the Peitangho the flooding of the Tientsin hin-
terland would cease, but that the Peiho would gradually
silt up and become almost impassable to traffic owing to the
formation of silt bars at its mouth. Despite this warning,
Li Hung Chang persuaded the Emperor to issue a decree
saying, ^^Let the work be done." It was done, and the
clear waters of the Heiho passed through the Heiang cut-
ting and joined those of the Hanho, both losing themselves
in the rapid and deep Peitangho, which latter empties itself
into the Gulf of Pechili, ten miles north of Taku. The
ability of the engineer, as well as his appreciation of what
must result from cutting off the scouring head waters, has
only too amply been manifested in the condition of this
waterway during the last fifteen or twenty years.

As Tientsin is at the head of that stupendous work, the
Grand Canal, it had an importance as a native port long
before it was dignified by being included in the category
of treaty ports (1860). The older writers, describing the
trade of Tientsin and Tung Chow, say that thousands of
native junks might be seen discharging their cargoes along
the banks of the river for sixty miles. This suffices to in-
dicate the importance of the ancient water transit of the
Peiho. To-day, however, this has practically all disap-
peared beyond Tientsin, owing to the construction of the
Peking-Tientsin Railway, and to the shallowing of the
river described above. The banks of the Peiho, both
above and below Tientsin, are crowded with native vil-
lages densely packed with an industrious population.

WATEK TRANSIT 358

On the low, flat lands on each side of the river between
Tientsin and Taku are great salt-pans and salt heaps or
stacks which, being a government monopoly, bring in a
large income to the Tientsin native treasury.

Tientsin, being the treaty port, is the town on the
Peiho with which foreigners are mostly concerned, and
its position as the key to the metropolitan province, the
metropolis itself, and to the great northwest of China and
Mongolia, g^ves it an importance as a port second perhaps
to none in the Empire. As it is, the trade of Tientsin,
particularly with Japan, is developing at a greater rate
than that of either Hongkong or Shanghai. During the
troubles of 1900 and the subsequent occupation of Chili
by the allied troops, the German military engineers
linked Tung Chow and Peking with a short railway of
standard gauge. This has somewhat revived the boat
trade of this ancient port of Peking, but to no appreciable
extent. Should, however, this railroad be carried on, as
suggested, to Yungpingfu and Chingwangtao, the impor-
tance of Tung Chow will undoubtedly revive and improve
the trade on this upper section of the Peiho.

At Tientsin there are separate concessions for British,
French, Germans, Japanese, Russians, etc. The separate
concessions have not, however, been changed into settle-
ments like the Anglo-American at Shanghai.

Owing to the opening of such places as Antung, Tatung-
kow, and Mukden as treaty ports or foreign trade towns
in Manchuria, the lesser waterways of this part of the
Empire have acquired an importance not hitherto con-
sidered. Of these lesser waterways the Liao Ho and
Yalu are the most important, the Liao Ho being the more
important commercially of the two. The Liao Ho, under
the name of the Lao Ho (Old River), rises in the Wuhu-
mahliang (Five Fox and Pony Pass) about eighteen miles

2a

354 CHINA IN LAW AND COBOnEBCB

due north of Ping Chuen Chow in the Jehol districts (Hot
River districts). It is soon joined in its course by the
Tseo Rao Ho (Little Old River) and continues generally
northward for about seventy miles until joined by the
Euntaoho, which diverts it northeast past Tsi Cba
toward Hei Sui, where it gets a tributary of this name
(Black Water). From this point it becomes navigable
for boats drawing two to four feet as far as Ba Cha near
the junction of the swollen waters of the Shilikaho (com-
ing from the north of the Wei Chang or Imperial Hunt-
ing Park) with the Liao Ho. This shallow-boat traffic has
to cease about half a mile from Ba Cha as the river shoals
to about nine inches and spreads to over half a mile in
width. The junction of the Shilikaho and the Liao Ho is
important as limiting the eastern end of the extensive
field of hard coal on which the prefectural and market
city of Chefenghsien is built. The combined waters
increase both the width and general depth of the river
which averages in the summer months for the next hun-
dred miles a width of a quarter of. a mile. The next
natural barrage is met above the confluence of the
Yinchingho with the Liao, which here begins to assume
the Mongolian name of Sirra Murren. On this stretch
many log rafts may be seen going up and down the river.
Grain boats are also frequently seen. In spite of the
rapid current, however, no use is made of it as a motor
power for sawmills or flour-mills. Its next tributary
is the Sirha Man Ho, a swift, deep river, of which no
commercial use is made at present. The course of the
river so far is generally toward the northeast. It carries
very little boat traffic owing to the numerous shoals (used
as fords), which would necessitate constant trans-shipments
of cargo. With very little engineering difficulty these
hindrances could be removed, opening up the river to

WATER TRANSIT 855

steam-tug and launch traffic as far as Chefenghsien, a
distance of about four hundred miles from Chang Chia
Tung, where it takes a southern bend for about two hun-
dred and fifty miles to Newchwang. The great rapid is
at Chang Chia Tung, and large junks of one hundred to
two hundred tons' capacity must load and unload near
this for the market-towns of Changchunfu, Huaitehsien,
Fenghuahsien, and Chaoyangpo. About seventy-five miles
from its mouth the Liao Ho is joined by the sister rivers,
the Hun Ho and Taitzuho, Mukden being situated on the
former and Liaoyang on the latter. Newchwang, situated
fourteen miles from the mouth of the Liao Ho, was opened
as a treaty port in the year 1860 through British influence.
On the stretch of river between Newchwang and Chang
Chia Tung there are a great number of Chinese, as dis-
tinguished from Manchu, market-towns. Besides these
there are numerous small villages daily increasing in
houses, population, and trade, attributable to the influx
of Chinese immigrants from overpopulated Shantung and
Chili. The river at Newchwang is from a half to three-
quarters of a mile wide, and the town and settlements
line the eastern or left bank for a distance of three miles,
and extend a mile into the interior. Like all waterways
of Manchuria, the Liao is practically closed to navigation
from November to the middle of April, though in mild
years the port of Newchwang may be open a week earlier.
Native boat rates on the river average about 6 cents
(Mexican) or l^d. per ton mile. Hosie puts down Tung
Chiangtzu, two hundred miles from Newchwang, as the
limit of navigation for trade junks on this river.

As by treaty foreigners now have the right of residing,
for commercial purposes, at Wiju, Yong Chong, Antung,
and Tatungkow in the valley of the Yalu River, this water-
way has assumed an importance little dreamed of in the

856 CHINA TS LAW AND OOHMSBGB

past, when it was looked upon only as the natural boun-
dary between Korea and Manchuria. This river is sup-
posed to have its source in the Chan Pai Shan (Long
White Mountain) in Manchuria. The weight of evi-
dence, however, goes to show that the main head stream
is that locally known as the Sam-su Kiang, which rises in
the Paikun San in Ham-yongdo province of Korea. Its
source is at a height of 4800 feet above the sea-level. A
lesser stream rises in the same province at 4800 feet on
Kap San Shan. It receives a great volume of water from
such mountain torrents as the Urtaokow, Maochr Ho,
Pai Shan Shui, and numerous others coming from the
Chan Pai Shan and Maochr Shan. In these regions
there are dense forests of pine, elm, ash, beech, birch,
and oak.

As already noticed with reference to the rivers of Man-
churia, the Yalu is closed to navigation during the long
and trying winter. It is three hundred miles long, but
is not navigable for junks of greater capacity than two
himdred tons above Wiwou, one hundred and twenty
miles from the mouth. In times of flood they can go as
far as Chasong, another eighty miles, but such transit can
only be assured for about six weeks.

The main tributary of the Yalu, the Tung Kiang, is
navigable for large junks as far as Hweijenhsien, fifty
miles from the junction with the Yalu.

The whole valley of the Yalu offers a fine field for
mining development. When the many concessions in the
region about Tunghua, Hweijen, and Nen San, held by
English and American syndicates, have been exploited,
the commercial value of this little-known but important
waterway must attract universal attention. Such condi-
tions must result from another direction, namely, the con-
struction of the Seoul- Wiju railway, which at a later date

WATER XBAKSIT 857

may be expected to join the Chinese Eastern Railway
system at Liaoyang.

The present trade of the Yalu would not justify men-
tioning it among the waterways of China, yet the oppor-
tunities it affords for developing the import and export
trade of eastern Manchuria and northern Korea will not
permit of its being passed over. Like all the neglected
natural waterways of the Chinese Empire, its channels,
many of which exist in the stretch of river from Kweillng
Chang to the s.ea, are barred by numerous ever changing
sand-banks which make navigation very dangerous.

In point of size, the Yellow River or Hwang-ho, is the
greatest of all the natural waterways of China, but from
a commercial standpoint it is of little importance. This
is not surprising, as throughout its entire vast length the
current is faster than that of the Yangtse in full 9ood,
and it is, in consequence, useless for navigation. The
strength of this current should make the river of great
value in developing electrical power. The Yellow River
could provide lighting for all the large cities of the re-
gions drained by its waters, as well as power for the
thousands of sUk looms throughout the ** Middle King-
dom." No attempt, however, has been made by either
natives or foreigners to harness its waste waters, except
in so far as it is tapped for the maintenance of the level
of the Grand Canal.

The artificial waterways of China are many, but one
stands out as a historic work, namely, the Cha Ho (River
of Flood Gates), Yun Ho (Transit River), or Grand
Canal. It is acknowledged that the rivers of China are
her glory — then her canals and creeks are the gloiy of
the Chinese, and of all these artificial waterways that which
intersects the country north and south from Tientsin to
Hangchow stands out as one of the most stupendous

858 CHINA IK LAW AND COMMBECS

works in a country where gfreat works were the pastime
of dynasties, the Grand Canal. In a country like China,
full of legend and superstition, no great work like the
Grand Canal could have been carried out without some
mystic influence, and thus the canal is endowed with a
^^ Dragon King" or genius of the elements, who is sup-
posed to have the canal and its fortunes in his special
keeping.

The great Kublai Khan, like some other great men, got
more credit than he actually deserved. To him was
attributed the credit of initiating this useful work, but
much of it was in existence long before the days of this
truly marvellous man.

The full reach between the Hwang-ho and Yangtse-
kiang was first mentioned during the Han dynasty, and
immediately became a great developer of trade between
the commercial towns which antedated its construction,
or sprung up along its banks subsequently. About the
year 600 a.d. it was found that it had been allowed to fall
into very bad order, and it was repaired during the reign
of the enlightened general who founded the Sung dynasty.
When his successors lived at Hangchow, they extended
the great work as far as that capital, by the cutting from
Chinkiang via Changchow, Soochow, and Kialing. This
was all completed before William the Conqueror was
bom, but it was not until about the year 1289 a.d. that
the section between Peking and the Yellow River, south
of Tungchaufu, and near Tai Chow, was completed and
opened by the Mongols, thus giving an entire navigable
artificial waterway of over six hundred and fifty miles —
by far the longest in the world. Owing, however, to its
varying in depth and width so frequently throughout its
length, the through navigation is not what this might be.
Few works in the world compare with it to-day, but at

WATEB TEANSIT 859

the time of its construction there were none like it. It
passes practically throughout its entire length tlirough
very light alluvial soil liable to floods from the more rap-
idly flowing streams, and consequently its banks are in
need of constant attention.

For two hundred miles between the Peiho and Yellow
rivers its banks have been raised to bring its waters
throughout its course up to the level of the Yun River
at Kaihochin. The sluices which keep the water at a
constant level are of the very rudest construction, but
they answer the purpose admirably.

Tientsin, at the junction of this canal with the Peiho,
has always enjoyed an importance as a great grain depot,
being the station at which was stored all the tribute grain
carried over this waterway. Other important stations
along its route, which have in the past, and may again in
the future, become important market centres, are Taang
Chow and King Chow in Chili ; Teh or Tei Chow on the
borders of Chili and Shantung; Lingtsingchow, Tung
Changfu, Tung Ping Chow, and Tsining Chow in Shan-
tung; Pei Chow, Huaianfu, Kiao Yen Chow, and Ying
Chowfu in northern Kiangsu; Chinkiang, Changchow,
and Soochow in southern Kiangsu; and Kialingfu and
Hangchowfu in Chekiang province. Of these Tientsin,
Chinkiang, Soochow, and Hangchow, being treaty ports,
are the most important to foreigners. There can be no
doubt that the deepening and, where possible, widening
of this canal and its subsidiary creeks, so that larger
steamers could ply on the waters, would increase enor-
mously the interchange of conmiodities between foreign
and Chinese merchants, and would generally develop
the country. From a commercial point of view one of
the most important improvement works in connection
with the canal would be the widening and deepening of

860 CHINA IK LAW AND GOMMBKCE

one or two of the already numerous creeks connecting
the Hwang-pu with the Grand Canal and the Ta Hu
(Great Lake), and thence the widening and deepening
of one of the bigger ^^rice canals" or creeks to Wuhu.
There is no engineering difficulty in the way of such
work if the line of the ancient Tangtse mouth be fol-
lowed, which time and official neglect, together with ill-
considered irrigation works in the rice and tea-tree regions,
have allowed to silt up to the narrowest and shallowest of
creeks.

With the imperial edict and regulations (1898) permit-
ting the navigation of the China inland waterways, the
advantages of the canal as a trade route have been opened
up to foreigners, who, however, are inclined to let this
permission lapse by non-user, like so many other advan-
tages obtained for them by the various diplomatic repre-
sentatives at Peking. By reason of its falling into bad
repair and the changing of the Yellow River's course,
nothing like the ancient traffic is carried on by this water-
way; but still very large river junks ply up the more
navigable reaches, some carrying as much as six hundred
to eight hundred tons of more compact goods, and two
hundred to four hundred tons of bale goods at a rate of
about I'd. to 1}({. per ton mile.

Though not actually canals, both the Hwang-pu and
Soochow creeks (now tidal waterways, but formerly out-
lets of the Tangtse) may be looked upon as trade canals
on which ply amaU junks and native passenger boats
drawn in train by steam launches. The Hwang-pu, on
which is situated that great trade accumulating and dis-
tributing centre, Shanghai, is the greater and more im-
portant of the two, and the native craft on it are of very
much greater carrying capacity than those on the latter
creek, which is a continuous source of worry to the

WATBB TRANSIT 361

Imperial Customs of China owing to the extent to which
it is constantly silting up. Very large towed trains ply
between Shanghai and Hangchow by way of the Hwang-
pu and Grand Canal. This mode of transit is cheaper
than in any other country, but there are the too frequent
annoyances of likin barriers which interfere with the rapid
expansion of trade in this naturally rich country.

Of the lesser canals, that mentioned previously which
connects the Yangtse with the West River, by way of
the head waters of the Siangho and those of the Kuikiang,
though only about twenty-five miles in length, yet offers
first-class opportunities for the development of foreign
import and native export as well as general transit trade.
Consequently, it assumes an importance which under
other conditions would not be accorded it. Here again
likin stations have been a hindrance to general usefulness.

The Lutai Canal in Chili was cut for the purpose of
bringing the products of the Kaiping collieries to Tientsin
and extends from Lutai to Tientsin native city, where,
having crossed the Peitangho, it joins the Peiho. At
the time of its cutting it proved a most valuable water-
way, but its utility has been to a great extent offset by
the construction of the Chinese Imperial Railway by Mr.
Kinder, the former engineer and manager-in-chief of the
Kaiping or Tangshan collieries. It, however, still carries
considerable quantities of coal on large barges, and much
grain is transported on its waters at very low rates. Its
length is about forty-five miles, but it is both narrow and
shallow.

There is another canal constructed by Kien-lung and
known by his name. It is about one hundred miles in
length and extends from Ifenghsien in Honan to the Hui
River in Nganhui, thus connecting the Yellow River with
Lake Hungtsze on the Nganhui-Kiangsu border.

862 CHIKA IK LAW AND COMMERCE

Throughout all the plains and delta formations in
China are numerous cutting^ utilized for irrigation and
small-boat navigation, and though they fill a most impor-
tant need, they are, both in conception and construction,
an impeachment, for ignorance, of the descendants of
those who had the ability to construct the Grand Canal.
Many of these cuttings have practically destroyed the
navigability of the waterways from which they obtain
their supply of water, and in no place is this more appar-
ent than in the hinterland of Shanghai, where the Hwang-
pu and Soochow creeks have been injured in this way.

The canalling and creeking of China has increased her
water communications by something between 7000 and
9000 miles, according to various estimates, but very
little of this length is utilized for steam or larger junk
traffic.

JRiver and Coasting Thraffic. — The value placed upon the
Chinese waterways and coast traffic may be inferred from
the number of ships sailing under various flags. There
are close upon five hundred such vessels, of considerable
tonnage, independent of those registered under the 1898
ordinance for the control of navigation on the inland
waterways of China. The foreign-owned coasting and
river steamers amount to over seven times those owned
by Chinese, but with regard to the small craft plying on
inland waterways under the regulations of 1898 the pro-
portion is more than reversed. In fact, the Chinese may
be said to control practically the whole of this service,
notwithstanding the opportunities it offers foreigners for
extending their commerce. The total volume of export
and import trade for the year 1890 was H.K. taels
214,289,961 and for 1898 H.K. taels 868,616,483, and
this total had swelled in the year 1902 to the imposing
figure of H.K. taels 529,545,489; that is to say, more

WATER TBAN8IT 868

than doubled in the twelve years between the first and
last dates named.

All this increase in export and import trade must affect
the distributing and collecting media, which in China at
the present time are the ships for coast and river trans-
port. There can be but one result — more coasting and
river ships must appear in Chinese waters to handle this
increasing exchange of commodities. At the present time
and for many years past the British flag has floated over
the majority of Chinese trading vessels, but the Japanese
have been rapidly eating into this supremacy, particularly
in the Gulf of Pechili and Korea Bay. The craft of the
latter, though now numerous, are of smaller tonnage than
those of their western allies, and in this have in some meas-
ure advantage, as they can navigate shallower rivers and
push their trade farther into the interior than can the
British.

The Japanese stop their vessels at all calling stations
not treaty ports, whereas the German and British flags
only check at the larger stations and treaty ports on
the coast or river banks.

The Japanese, understanding the Oriental customers
better than do westerners, are gradually working into a
transit trade in China which will, at a later day, justify
them in putting larger vessels on the service. Mean-
while their little craft of a few hundred tons' capacity
earn good profits.

The oversea shipping is rapidly on the increase to and
from Japan, Korea, the Philippines, the Straits Settlements,
and the French and Dutch Indies. Vessels are being built
locally to meet local requirements, but a definite study of
local conditions would enable foreign ship-builders to com-
pete in contracting for coast and river steamers.

In the year 1897 the steamships engaged in the coasting

864 OHIKA IK LAW AND GOMMBRGB

Bervice and transocean service did not exceed 80,000 tons,
whereas to-day one of the local shipping firms could boast
of a greater gross tonnage.

The freightage and passenger rates for coast or river
journey are, on an average, very low, particularly for
Chinese passengers and goods, as they have to compete
with those charged by the cheap but slow passenger and
freight junks.

At the present day a Chinese company, the China Mer-
chants' Steam Navigation Company, has a fleet of thirty-
four vessels with total net tonnage of over 57,000 tons,
while another company, Yan Sung and Company, with
twelve steamers carry heavy traffic along the Chinese
coast and rivers. Of British firms in the coasting and
river traffic, one, the Indo-China Steam Navigation Com-
pany, with thirty-nine vessels, totals over 59,000 net
tonnage. The China Navigation Company with sixty
vessels totals over 80,000 tons net. The Chinese Engi-
neering and Mining Company with six vessels totals over
5900 tons net. T. W. Richardson has five, totalling 3900
tons. McBain and Company's five steamers total 8900
tons. Douglass and Company has over 5000 tons dis-
tributed over six vessels. In the year 1908 the Russians
operated twenty steamers belonging to the Chinese East-
ern Railway Company, totalling over 20,000 tons. Six
steamers, totalling 5200 tons, belonged to the Mitsu
Bishi Goshi Kaisha and carried on a considerable coast
traffic, especially in the Gulf of Pechili, while the Mitsu
Bussan Gomi Kaisha had twenty-three vessels, totalling
more than 12,000 tons. Other Japanese firms engaged in
the coast and river traffic of China are the Nippon Tushe
Kaisha (eight vessels), the Osaka Shosen Kaisha (six
vessels), the Toyo Kisen Kaisha, and the Taito Steam
Navigation Company.

WATER TRANSIT 865

Of German firms there are apparently fewer in com-
parison with ten years ago, but that comes from the
larger firms having absorbed the smaller. The Nord-
deutscher Lloyd operates nineteen steamers on the rivers
and coast-line. Melchers has fifteen in the same trafEic,
Siemssen and Company have five, and Buchheister and
Company, one.

The American flag covers the Standard Oil Company*s
steamer and the vessels of the China-Manila Steam Ship-
ping Company. But up to the present time the American
people have not taken upon their shoulders their natural
share of the white man's burden in the way of shipping
on the coast and rivers of China. British firms stand at
the top of the customs list of clearances and tonnage,
and among these firms the China Navigation Company
takes the lead. The German position in this class of trade
is slowly but surely yielding to Japanese energy. French
coasting service is a negligible quantity. Germany, in
fact, is the only continental European power which has
seen the great profits to be derived from the coasting
traffic and river transit of China.

From the Chinese Imperial Maritime Customs Reports,
1908, the following local or coast shipping returns show
the great coast and riverine traffic which is gradually
opening up in China: —

866

CHINA IN LAW AND COMMERCE

WW AA

ToinrA«B Out-

WABM

Total ToBMC*

OfdOtnDOM

TOMHAOS IVWAXDft

WLAm

OloftnuiOMAt
TrofttjPorU

Eatvtosftt
TVefttj Porto

Total Tonnago
ofEatrieo

British . . .
American . .
German • .
French • • •
Dutch • . ,
Danish . .
Spanish. . .
Norwegian
Swedish .

Austrian .
Belgian. .
Italian . .
Japanese .
Peruvian .
Brazilian .
Portuguese
Korean . .
Non-Treaty
Powers .
Chinese .

9,821

678

2,868

667

12

26

236

33

324

3

2,661

11
13,836

10,082,642

72,014

2,480,206

164,446

18,892

27,186

228,622

28,870

187,138

1,864

2,623,694

6,996
4,661,717

9»469

667

2,416

668

18

82

264

39

316

2

1
2,681

11
13,289

10,218,840

54,460

2,600,141

161,007

16,348

31,436

261,249

32,694

186,997

1,236

200

2,668,180

6,996
4,640,376

Total .

29,660

20,314,127

29,700

20,619,168

The subjoined table gives some idea of the use of this
method of transportation as a result of the inland steam
navigation ordinance of 1898. In this connection inland
navigation means traffic between any ports or stations
other than treaty ports, or between treaty ports and these
so-called closed or Chinese ports, whether on coast, river,
canal, or creek. So that for vessels registered with the
Imperial Maritime Customs for inland navigation, which
do not trade to foreign countries or ports, the whole

WATER TBAK8IT

867

of China may now be said to be one treaty port for the
world. And there is no objection to any such steamer
being fitted up as a commercial traveller's show-room in
order to push his trade under special permit from the
Imperial Maritime Customs of China. The vessels reg-
istered for inland steam navigation are of three hundred
tons and under.

VESSELS BEOISTERED 1899 TO 1903

1609

1900

1901

1902

1908

At Tbxatt FoKt

«
-a

1

1

1

1

1

&

a

1

•

e

1

o
fa

Ndwchwftng . • • •

,_

„^

^^^

^.^

^__

^^

^^

10

2

24

Chefoo . .

10

8

1

14

1

76

11

46

4

66

Tochow

—

-»

10

^

10

1

1

1

8

3

Hankow

18

6

14

4

11

6

6

1

6

4

KiukiaDg .

8

—

_-

.—.

^—

^^

2

^—

—

__

Wuhu . .

2

—

1

^.

_

_

2

1

8

2

Nanking

—

—

^

—

^

-^

—

—

8

—

Chinkiang

—

6

2

1

—

8

1

7

4

6

Shanghai .

40

10

88

10

25

21

6

40

12

Soochow .

2

—

2

—

8

—

—

1

1

3

Hangchow.

1

—

1

—

—

—

—

—

—

—

Ningpo . .

6

—

6

—

6

2

6

2

6

4

Wenchow .

—

—

1

—

—

—

•—

—

—

Foochow .

—

—

—

1

—

2

X—

8

4

3

Amoy .

8

11

6

16

7

18

7

22

1

6

Swatow . .

6

8

6

6

6

6

—

—

1

1

Canton • ,

60

22

100

14

46

18

16

12

17

16

Samshni

2

1

22

—

10

1

1

11

2

Wuchow .

17

—

88

^

10

4

11

6

12

11

Kinngchow

—

1

—

—

—

—

1

—

1

Pakhoi . .

^^

-~-

—

—

1

•^

^^

—

868 <;HINA IK LAW AND COHMBBCS

The regulations were amended in a special clause of the
Sheng-MacKaj Treaty of Commerce, and the years 1902
and 1908 show the effect of the facilities therein secured.
Still greater advantage was taken generally of the regula-
tions in 1904, but the result is still only a decimal per-
centage of what might be done by this means.

CHAPTER XV

BAILWAY TBANSIT

There can be no doubt that the roads, riyers, canals,
and creeks no longer cope with the daily increasing ton-
nage of the external and domestic trade of China, to
which railways must now cater.

Half a century ago Sir Robert Stephenson, recognizing
. the great potentialities of railway construction in China,
hoped to establish a system of trunk railways which would
be solely in the hands of the Chinese government. He
had the idea that trunk systems were of great military
and political interest to the state and that they conse-
quently should be owned and controlled by the state.
The feeders or branch lines might, in his view, be with
advantage the concern of private enterprise.

Few things in the modern history of China are of more
universal interest than those connected with the building
and running of her first railways and the rush made by
foreign powers and individuals to secure railway rights in
China in the closing years of the past century. No ex-
pression could put this more aptly than a heading to an
article which appeared in the London Time$^ entitled ** The
Battle of the Railway Concessions in China.*' Battles
they were, but not of war, for these are as a rule clean
and creditable, and the battles of the railway concessions
in China were accompanied by political and international
jobbery discreditable to the pages of the history of foreign
connection with China.

8b 800

870 CHINA IN LAW AND GOMHEBGB

Nothing was done at the time of Sir Robert's visit ;
but in the year of 1876 about ten miles of railway were
constructed between Shanghai and Woosung, built close
to the Hwangpu, bj a British firm. Its life was very
short That potent factor in all things Chinese, fSng^
aAtft, was affected, and this line, though it was doing a
good traffic business, was bought up by the Chinese, and
the rails were pulled up and some engines smashed to ap-
pease the votaries of this science or geomancy. The rails
and part of the rolling-stock ultimately found a resting*-
place in the island of Formosa, where a railway was later
constructed with the derelict and rusty material.

The Woosung-Shanghai Railway, thanks to certain en-
lightened Chinese merchants associated with H. E. Sheng
Hung Pao, was reconstructed and opened to passenger and
freight traffic in the year 1898. At first this line went
from nowhere to nowhere. It did not come into Shanghai,
as its terminus at that end was on the borders of the
Hongkew, or American concession, while the Woosung end
finished at the Woosung creek; but since the untoward
events of 1900, after which Woosung was made a treaty
port and the forts were dismantled, the rail head was
pushed across the creek and on to the forts, where at least
it is of some use to the shipping anchored at the Woosung
roadstead. The traffic is now fair, but when the connec-
tion with Nanking is completed via Soochow, Chang-
chow, and Chinkiang, few railways in the world should
compete with this line as a paying investment. The
British China Corporation have had the concession for
this extension, as well as that to Hangchow, in their hands
since the year 1898, and it was only in the summer of
1904 that this corporation made any attempt at obtaining
a portion of the capital required for construction, although
they are aware that the earnings on the Shanghai-Soochow

BAILWAY TRANSIT SYl

section would soon pay for constructing the other con-
cession.

In the year 1891 ninety-four miles of railway were con-
structed between Tientsin and Kuyeh by R. Kinder, the
manager at that time of the famous Kaiping coal-mines.
The year following the opening of this section of the
Imperial Chinese Railway of Chili witnessed the transport
of oyer 488,000 passengers besides much goods traffic. In
each year following fully fifty miles per annum, and in
some years over sixty miles, were constructed, and trains
with thirty to forty coaches were not an uncommon sight,
the track passing through very level country.

Until quite recently the central government thought
very lightly of the commercial use of railways. Their
main object in permitting their construction at all was
to facilitate the transportation of troops and war mate-
rials, as well as to hasten the influx of grain and other
tribute to the imperial exchequer. That the government
does not look upon the imperial railways as a profitable
industrial undertaking may be assumed from the lax
manner in which it permits railway accounts to be kept,
without audit or any other check than that of inspection
by corrupt officials, who replenish their depleted purses
out of the railway's earnings, and pass on.

In the year 1897 the Tientsin line was opened to Feng
Tai, about five miles from the Chinese or outer city of
Peking. This line, during the foreign occupation of Chili
in 1900, was advanced through a breach in the city wall
near the Tungting gate to a station in front of the
" Temple of Heaven." Under the British Railway Ad-
ministration Colonel MacDonald, in 1901, pushed the rail-
way track round the southern and eastern sides of the
^^ Temple of Heaven," past the Hatahmen and the historic
water-gate of the imperial Tartar city, to the Chen Men,

872 CHINA IN LAW AND COMMSRCB

thus bringing the extended legation area within railway
touch of the Gulf of Pechili.

In the year 1901 the German military authorities com-
pleted, with material taken from the Imperial Chinese
railways, a line from Peking to the ancient metropolitan
river port of Tung Chow, on the Peiho. The Imperial
Chinese Railway in 1894 advanced to the northeast, past
the Great Wall at Shanhaikwan, and threw out a branch
in 1900 to Chingwangtao, the ice-free port on the Gulf of
Pechili. From Shanhaikwan it extends still northeast to
Kupangtzu, passing the extensive Nanpao fields, to which
a branch of about thirty miles is laid. At Kupangtzu it
sends a branch south-southeast to Newchwang, the treaty
port of Manchuria on the Liao River, while the main line
continues to Hsinmintun, on the Peking-Kirin caravan
route, about thirty-five miles west of Mukden. These lines
at Peking, Newchwang, and Hsinmintun, emanating from
the central terminus at Tangku, the port of Tientsin, were
bonded in 1898 to a body known as the British China
Corporation, now afiiliated with the Peking syndicate.
This bonding was for the purpose of raising 16,000,000
taels with which to complete the line which in 1896 had
been checked at the Tolingho, twenty miles northeast of
Kinchow. Article II. of the agreement under which
the money was raised is most interesting, and reads :
^' The security for the loan shall be the permanent way,
rolling-stock, and entire property, together with the
freight and earnings of the existing lines between Peking,
Tientsin, Tangku, and Chunghouso, and also the proposed
new lines when constructed, in addition to the rights of
mining coal and iron, which will be retained by the Rail-
way Administration on each side of the proposed new
lines for a distance to be determined. In the event of de-
fault or arrears in the payment of interest or repayment of

BAILWAY TBAN8IT 878

principal, the said railway lines and mines shall be handed
over to representatives deputed by the syndicate to manage
them on their behalf until principal and interest on the
loan are redeemed in full, when the management will
revert to the Railway Administration," and ^^No further
loan, charge, or mortgage shall be charged on the security
named above until this loan is redeemed."

The bonds were to bear five per cent interest, and were
issued at 90.

Up to the year 1898, a year when progressive ideas
penetrated the walls of the forbidden city, railway enter-
prise was a very doubtful undertaking, and litUe trust
was placed by native merchants in any government-owned
mines, while all parties in the central government were
animated by the prevailing idea, that if railways were to
be built, the intervention of foreign merchants and their
capital was to be debarred at any cost. From an inter-
national point of view the Railway Bond Contract of the
British China Corporation was a great gain to the outer
world, as it opened the closed door of Chinese railway
development. Whether this prove a permanent opening
up of the railroad potentialities of the Empire, in the
direction of concessions to alien powers and alien com-
panies, remains to be seen ; but it seems to me that the
Chinese government would have forwarded its own
interests more, had it taken the bond contract with the
British China Corporation as a basis on which to find the
necessary capital to construct its trunk-lines, instead of
alienating wholesale concessions to companies whose very
existence bore the stamp of their political origin.

An idea of the political significance to be attached to
some European railway concessionaries may be obtained
from the following extract from *^ Greater Russia" by
Gerrare : *^ With a railway in existence from the Siberian

874 CHINA IK LAW AND COMMEBCB

trunk-line to Kalgan, Russia will have a foothold in the
Chinese Empire from which it will be difficult to dislodge
her. There seems little doubt but that an advance south
is intended to meet the northward advance of France in
Yunnan in order to cut off British traders on the Yangtse
with the Chinese hinterland to the west, the ultimate
market of imported goods to Shanghai/' The better term
would have been Anglo-Saxon traders, as American trade
is aimed at as much as that of Great Britain. Thanks,
however, to the military political mission under Colonel
Younghusband, in the advance on Lhasa and its capture.
Great Britain has been able to cry " check " to the Franco-
Russian and Belgian Railway mission for closed doors to
the west.

In 1896 the Chinese Eastern Railway agreement was
signed between Russia and China. This was known to
the world as the *•*• Cassini Convention." By this conven-
tion it was agreed that Russia should lease certain ports
in Manchuria and China and connect her eastern Siberian
railway system with these. This was denied, but in Sep-
tember of that year this treaty was announced as a com-
mercial undertaking, without political aims, between the
Chinese government and the Russo-Chinese Bank; and
on August 28, 1897, at the frontier of Kirin, the first
sod was cut in what was to be the trans-Manchurian rail-
way, and what proved to be the excuse for Russia for
one of the most cruel massacres in the pages of history,
the attempted seizure of one of the richest tracts on the
earth's surface, and culminated in one of the most san-
guinary wars the world has known.

Then in March, 1898, the important section of the
^' Cassini Convention '* was stripped of all shrouding and
shown naked to the world in the Li-Pavloff treaty of Port
Arthur, by which this stronghold, as well as the port and

BAILWAY TBANSIT 875

harbour of Talienwac, together with the adjacent seas, was
leased to Russia for twenty-five years. Sanction was
given to construct the central Manchurian railway from
a suitable point on the trans-Manchurian railway to Port
Arthur. It was distinctly stated in Article VIII. of this
treaty : ^^ The construction of this line shall never, how-
ever, be made a ground for encroaching on the sovereignty
or integrity of China." Never did words mean less and
conceal more, as the Chinese were only too soon to learn,
when the Boxer movement was engineered from a mere
rebellion into an anti-foreign movement, so that Russia
might be given the opportunity of seizing as much of the
Chinese Empire, and of Manchuria in particular, as could
be secured without her being called to account.

Port Arthur was occupied on March 28, 1898, and in
May of the same year work started three miles up the
Liao Ho from Newchwang to run a branch line to Tashih-
chao (Great Stone Bridge), seventeen miles distant, and
on its completion, the following year, constructive work
on the main line both toward the north and the south was
started. About the same time construction was slowly
but surely creeping forward from the south, until a con-
struction train was able to pass direct between Newchwang
and Talienwan over a line as yet roughly laid. By the
spring of 1900 the road had been so far laid that pas-
sengers who did not mind roughing it in ill-constructed
cars, little better than cattle wagons, could make the jour-
ney from Tiehling (forty miles north of Mukden) to New-
chwang (over one hundred and sixty miles) or Port Arthur
and Talienwan (about three hundred miles). Early in the
year 1898 a few scattered houses, a grain store, and a dis-
tillery marked a certain spot on the Manchurian plain
in the valley of the Sungari, about ten miles to the east
of the old caravan rest and inn of Hulantien. Then a

876 CHIKA IK LAW AND COMMEBCB

memorable day arrived for that lonely spot eight hundred
and fifty versts north of Port Arthur. In the cold, bleak
dawn of the early spring morning a steamer came along-
side the eastern bank of the Sungari and commenced dis-
charging its load of human freight and railway material.
The human cargo consisted of Russian engineers, sur-
veyors, clerks, military guards, etc. There was very little
delay in cutting down and conveying timber and erecting
log dwellings for these railway pioneers and forerunners
of Russian military aggrandizement. The surveyors
started at their particular work of deciding upon the
lines to be taken by the trans-Manchurian and central
Manchurian railways. Meanwhile the engineers were
busy laying out the plans for a great settlement, after
the style of the western city in the United States, with
broad streets on the block system. As house after house
sprang up from the ground with mushroom rapidity, there
were always new people to occupy them. These arrived
as fast as steamers could navigate the Sungari, all bent on
the same object of pushing forward the Manchurian rail-
ways. In two years the lonely spot was echoing with the
hum of the steam saw, the burr of the flour-mill, the
clanking of iron and steel. There was a town, Harbin
(Ha-ehr-bin), boasting several thousand inhabitants. In
1900 Dr. Morrison estimated the population as over 80,000.
However much one may object to Russian policy and Rus-
sian corruption, no one who has seen anything of the con-
structive work of the Russians in Manchuria can long
withhold his admiration for their fixity of purpose and
the tenacity with which they overcome difficulties and the
thorough belief they have in themselves as the instru-
ments of Providence in spreading their civilization in the
regions in which they gain a footing.

For rapidity of growth the great railway junction town

BAILWAY TRANSIT 877

of Harbin excels Johannesburg, although its foundations
are not made of gold, as in the case of the city of the
Rand.

By the end of 1902 Harbin was, in the mind of the
mere traveller, only one of many stations on the through
run from Port Arthur, Talienwan, or Newchwang to
St. Petersburg, or even Berlin and Paris, but to Rus-
sians it meant a great deal more. The flash of pride
which came in the eyes of Viceroy Alexeieff, as he looked
upon the nucleus of a new St. Petersburg of a Greater
Russia in the Orient, was reflected by all around him, from
railway guard, frontier guard, and Cossack to the highest
officers, both civil and military.

Though built essentially as political and military under-
takings, the Manchurian railways, or Chinese Eastern
railways, as they are officially called, must have a benefi-
cent effect on Manchurian trade generally, as that country
is more and more opened to foreign and Chinese settle-
ment.

The Chinese Eastern railways are built to the Russian
or broad gauge, while the Chinese railways of Manchuria,
or Imperial Chinese railways, are built to the British or
standard gauge, so that even did the Liao Ho not inter-
vene, or were it bridged over, there could be no system of
through-running trains. In the beginning of the year
1904 the railways of Manchuria, both those of English
and those of Russian origin, would compare in construc-
tion with any lines in the world. They were splendidly
ballasted and systematically operated. Most expensive
bridging is a feature of the Chinese Eastern railways, as
it is of the trans-Siberian line. The quality and number
of the bridges may account in part for the heavy cost per
mile of these raUways as compared with those of the
Imperial Chinese railways. Since February, 1904^ the

878 CHINA IN LAW AND COMMBBCB

Russians have completed the branch line from Chang-
chunfu (one hundred and seventy miles north of Muk-
den) to the great trade town, ninety miles distant, called
Kirin, the capital of the province of the same name. Ten
miles north of Liaoyang (on the Taitzuho), there is the
station of Tentai, from which a branch railway runs east
for over twelve miles to the hard-coal mines of Ma Shih
Shan.

The branch to Kirin, though built by the Russian mili-
tary authorities for strategic purposes, should prove, in
times of peace, a paying adjunct to the trunk system, as it
runs through a well-populated area to which considerable
trade in native and foreign products is carried overland by
carts and camels, at rates varying from 1 to Sd. per ton
mile, or 5 to 15 cents (Mexican). As the railways of
China seldom rise higher in freightage than Id., or less
than 5 cents per ton mile, this line, working on a similar
scale, should attract considerable traffic. Near Kirin are
large deposits of coal, which are worked in a primitive
fashion. The output commands in the capital 6 to 10«.,
or $3 to $5 (Mexican) per ton at retail. Several of the
mines lie along the ninety miles of railway, and to the
north of the city and east of the Sungari. Iron and gold
(in quantity) are found to the east and southeast of Kirin
city, and these will prove at a future date valuable
freights for the highly important branch, as will also the
timber from the forests to the east and south.

Though the Vladivostock-Harbarovsk Railway is not
actually a part of the Chinese Eastern Railway system, it
has such an effect on the trade of eastern Manchuria that
it may be considered in a description of Manchurian land
routes. Work on this iron road was commenced May 31,
1891, when the first sod was turned by the present Czar
(then the heir apparent), and it took four years and nine

BAILWAY TBANSIT 879

months to complete about four hundred and eighty miles
of track at a cost for permanent way and rolling-stock
of over £8000 per mile. Traffic commenced on Febru-
ary 13, 1896. At the town of Nikolsk, nearly one hundred
miles north of Vladivostock, this railway, which is called
the Ussuri line, joins that of the trans-Manchurian system.
It is an imposing and important town. From Nikolsk the
Ussuri line runs due north through densely wooded coun-
try, full of large and small game, reported as being a richly
metalliferous belt, and, passing between fifteen and thirty
miles to the east of Lake Hinka, gradually drops into the
valley of the Ussuri to the east bank of which it crosses
between Lutkovskaia and the station of Ussuri. The
bridging along this route is a standing testimonial to
Russian railway-engineering skill, particularly the three-
span bridge, seven hundred and eighty feet long, crossing
the Ussuri at the above-named point, and the iron girder
structure of two spans, measuring five hundred and sixty
feet over the Bikin River, two and a half miles to the south
of Bekin River. This portion of the track runs through
country alternating between hill and valley, the latter
liable to floods. The hills are densely covered with oak,
birch, pine, ash, and elm, and are traversed by picturesque
rivers, streams, and hill cascades. Considerable beds of
coal and iron, as well as alluvial deposits of gold, lie to
the west of this river and railway, but practically nothing
has been done to develop them. The two tributaries of
the Ussuri, the Khor and Kiya, which, coming from the
east, join the river about seventy-five miles south of
Harbarovsk, had to be bridged, the latter requiring a
structure of four spans, eight hundred and forty feet in
total length. There were practically no engineering
difficulties between this point and Harbarovsk. The
station of Krasnaia-Retchka, about sixteen miles south

880 CHINA IN LAW AND COMMEBCB

of HarbaroYsk, is a junction for a short line of six miles
running to the banks of the Ussuri, which is naviga-
ble for steamer traffic to the junction of the Iman River,
and on these two rivers steamer freightage is cheaper than
rail transit. The cost of the latter is exorbitant. Trains
travel over this line at the rate of about twenty-four
miles an hour, exclusive of stops, which, however, num-
ber about thirty stations and nearly as many wayside sid-
ings, where trains pull up for intervals far too long. The
journey thus takes little less than two days. The rolling-
stock is abundant, the trains are heavy with goods and
passengers, and everything connected with the railway
suggests a profitable enterprise with a great future under
normal conditions.

I have now given a description of the existing railways
to the north which belong to, or have a direct or indirect
bearing upon, the Chinese Imperial Railway. And now,
starting with Peking, 1 will trace the iron road southward.
In the minds of the Chinese the most important railway
work in China is the construction of a line to link the
capital of the Empire with Hankow, and the history of
this line is of the gravest interest to all Anglo-Saxons
having commercial interests in China. It was originally
intended that this line should form one of the great trunks
of the Imperial Chinese Railway system, but in the year
1897 a wealthy Belgian syndicate secured the franchise to
construct the line, although a powerful Anglo-American
syndicate was in the field seeking a concession. However,
with the assistance of the diplomatic representative of
France in Peking working for the Belgians as against
Anglo-American commercial interests, the right to con-
struct the line was secured by a nominally commercial
Belgian syndicate, as above stated, in 1897. The nomi-
nally Belgian syndicate is in reality a Franco-Russo-Belgian

BAIL WAY TRANSIT 381

political group endeavouring by every possible means to
cut off British and American trade from the centre and
southwest of China. The British and American ministers
protested against the betrayal of their national interests,
but their^ protest was disregarded by Chinese officialdom
engineered by continental diplomacy in Peking. On the
other hand the Russian protest against the bonding of
the Newchwang and Hsinmintun sections of the Pechili
railway to the British China Corporation was again suc-
cessfully engineered by continental diplomacy.

I do not for a moment wish to reflect upon diplomatic
servants of the continental powers, but wish to emphasize
the fact that those familiar with Orientals can better un-
derstand the workings of Oriental minds and the best way
to obtain what they desire from Orientals. If Great Britain
and America wish to be successful in the rush for China
markets, their ministers in Peking should be trained in
things Chinese.

To return from this digression to the Peking-Hankow
(Peihan) Railway. This association of Franco-Russo-
Belgian financiers has in its contract secured the full
right of mortgage, alienation, and foreclosure of a line
penetrating into the heart of the alleged British sphere
of influence, the Yangtse valley. It is a well-known fact
that the politico-commercial Russo-Chinese Bank, in which
the Russian central government is deeply interested, has
always been at the back of the Belgian syndicate, that
bantling corporation controlled by the financier king of
the Belgians. This monarch and the Belgian corporation
have all along been accused of being under the guidance
of Russia. When this fact is known, it gives point to the
remarks previously quoted from "Greater Russia " by Ger-
rare. In the year 1899 the governments of Great Britain
and Russia, "animated by a sincere desire to avoid in

882 OHINA IK LAW AND GOHHBBCB

China all cause of conflict on questions where their inter-
ests meet, and taking into consideration the economic and
geographical gravitation of certain parts of the Empire,''
agreed (1) that ^' Great Britain engages not to seek for
her own account, or on behalf of British subjects, or of
others, any railway concessions to the north of the Great
Wall of China, and not to obstruct directly or indirectly
applications for railway concessions in that region sup-
ported by the Russian government.'*

(2) ** Russia on her part engages not to seek for her
own account or on behalf of Russian subjects, or others,
any railway concession in the basin of the Yangtse and
not to obstruct directly or indirectly applications for
raUway concessions in that region supported by the
British government."

Both the British minister and the British government
at home have consistently adhered to the letter and
spirit of the 1899 convention. On the other hand, the
Russian minister, Russian political agents, and the Russian
government at home have as consistently overridden the
convention in word and spirit, and nowhere more flagrantly
than in securing for the Russo-Chinese Bank a controlling
voice in the finances and management of the Peihan
(Luhan) Railway between Peking and Hankow.

Mr. Kinder, engineer-in-chief of the Imperial Chinese
Railway, undertook the construction of the line from
Fengtai, the station on the imperial system distant from
the imperial capital only five miles. Under his supervision
the work was carried out at a cost of about £6000 or
gold $30,000 per mile, and was in full running order for
the eighty-eight miles to Paotingfu early in October, 1899,
under the Imperial Chinese Railway Administration. At
this time a further ten miles had been constructed from
Liukouchao on the Liulikou to Choukoutien and handed

RAILWAY TRANSIT 383

over to the Belgian syndicate, ^^ Compagnie de Chemins
de Fer Chinois.'* In March, 1899, previous anticipations
of the inability of this Belgian syndicate to complete the
line to Hankow were only too amply justified. Although
the Anglo-American syndicate held a right of reversion in
case of the failure of the Belgian group to construct the
line themselves, the aforementioned Franco- Russo-Belgian
syndicate, under the name of the '^Societe d'Etudes de
Chemins de Fer en Chine," secured de facto the full con-
trol of construction and working of the Luhan Railway
by giving a loan of £4,500,000, the money to be returned
by the Chinese government in annual instalments for
twenty years from the date of the first instalment in 1909.
The loan was issued on April 12, 1899, and was subscribed
five times over.

The French and Belgian surveyors got rapidly to work
from both the Paoting and the Hankow ends of the line,
and, thanks to their efiPorts, the world is in possession of
detailed maps of great value of the country along the line
of the railway. They indicate the great trade towns, with
an index of the populations and the possible transit trade
to be derived from these; and this is one of the most valu-
able points in connection with the building of the rail-
way. They also indicate the extent and class of minerals
in the surrounding country.

The French and Belgian officials in one respect showed
their capacity for such work. They employed as far as
possible local labour in the various districts traversed by
the road, with the result that the construction of the
embankment was very rapid.

In September, 1901, the permanent bed of rails had
crossed the Hupeh and Honan borders from the south;
that is to say, the embankment had been pushed from the
south for one hundred and fifteen miles northward and

384 CHINA IN LAW AND COMMENCE

rails laid for more than seventy-five per cent of this dis-
tance. As quickly as possible each section was opened,
and trains were running by the end of the year over
ninety-one miles of the route. Farther north the bridge
construction was only started, and trains ran over tem-
porary wooden erections. Serious riots in Hupeh, Honan,
and Chili during the month of May, 1900, had driven the
railway engineers from the outlying districts into concen-
tration camps. The riots continued throughout the month,
and took a ^' Boxer " tone in June, in which month the
Lukouchou station was burned, and later the same fate
befell the stations at Fengtai. The disturbed condition
of the country throughout 1900 prevented any railway
work being carried on in the interior.

During the absence of the legitimate government from
Peking and the period of foreign military occupation, the
Luhan directors came to an understanding with the
British Railway Administration that both bodies should
transfer their termini from Fengtai to the Chen Men of
the Tartar or inner city of Peking. By the beginning of
the year 1904 the railway was open as far south as Kihsien
and as far north from Hankow as Siu Chenhsien. By
July work was pushed as far south as Weihuif u and north
to Cheng Chow. It cuts through important mining areas
and taps wealthy markets, so that from a commercial point
of view the linking of this line over the great Hwang-ho
bridge will be an event of international importance.

The fares and freight charges on this line are somewhat
heavier than those on the Imperial Chinese railways of
north China, but at the same time are very low in com-
parison with those obtaining on foreign roads.

In the year 1898 an Anglo-Italian sjmdicate, subse-
quently known as the Peking syndicate, secured extensive
mining, railway, and industrial rights in Shansi, Shensi,

BAIL WAY TBANSIT 385

and north Honan. The following year saw the railway
surveyors and mining prospectors of this syndicate spread
all over the area named, where they continued their
labours until the events of 1900 drove them to safety in
the treaty ports. By this time, however, they had suffi-
cient data to go upon, and one of their many railway
projects was mapped out. This done, and the country
somewhat quieted, the pioneers returned to their posts,
and through the Chinese party in the syndicate proceeded
to purchase land necessary for the line. Actual construc-
tion was started in 1902, and by the beginning of 1904
the iron road was opened from Taokow (Head Gully) on
the Wei River to Pa Shan, near Chunghua, a distance of
about eighty-seven miles, cutting the Peking-Hankow
route at right angles. When first opened, the line car-
ried only employees of the syndicate's mines and rail-
ways, but the new mode of conveyance attracted the
attention of natives rich and poor. These were carried
at merely nominal rates, and the line became the most
popular mode of conveyance for both goods and passen-
gers. The freight for goods was 4^ cents, or less than
1(2., per ton mile, and for passengers in the roughest of
third-class trucks about ^ cent per mile. Owing to the
amount of traffic, these rates were exceedingly remunera-
tive. It is, however, intended to have final rates some-
what between those of the Imperial Chinese railways of
north China and those of the Luhan line.

In March, 1904, negotiations were opened between the
Peking syndicate and the administrative bureau of the
Chinese Imperial railways with the object of the latter
taking over the traffic management of the line and leaving
the syndicate at liberty to extend the line north and west
from Chunghua. Pending the decision work on exten-
sions was temporarily suspended. For all parties con-
2o

886 CHINA IN LAW AND OOMMBBGE

cemed it is to be hoped that the state will be induced to
take up the direct administration of the various railway
systems as completed, giving the constructing companies
such compensation as will tend to the extension of their
work as railway buUders. In this manner the Chinese
would have the unhampered control of such lines in case
of xnilitary mobilization.

With the working of the Shansi and Honan hard coal,
as well as of the iron and oil of Shansi and Shensi, the
value of this railway will be second to none in America
or England. As an example of the transportation value
of this railway it would be almost sufficient to say that in
the year 1898 China imported 730,606 tons of coal, and
that this importation is on the increase, while in the
province of Shansi there are 13,000 square miles of coal-
fields with seams of anthracite from eight to forty feet
thick, together with an almost equally extensive bitumi-
nous coal area. The syndicate which constructed the
railway just mentioned holds the proprietary mining rights
in these two vast fields. Pennsylvania in all her glory
does not hold out such opportunities for mining and
railway enterprise as does the region of this line.

The embankment is partially constructed and the per-
manent way prepared on the road to Huai Ching, and
ultimately this line will be extended southwest to Honanf u^
where it will join the same company's projected line, in
conjunction with the British China Corporation, to
Kaifeng and Tsao Chow, where it will join the Grerman
Shantung system.

The student of Oriental history will recall that in the
year 1897 an Anglo-Saxon missionary, Mr. Brooks, was
murdered, but beyond demanding the adequate punish-
ment of the culprits and the officials responsible. Great
Britain made no move. It was, however, different in

RAILWAY TBANSrr 387

November of that year when, by the murder of two Ger-
man missionaries, Teutonic pride was wounded in its
imperial dignity. The punishment of the murderers and
local officials was not sufficient. The vigorous mailed fist
was ready to grasp wherever there was little chance of
receiving a counter blow from the country attacked.
The pride of Germany could only be satisfied with the
cession of Kiao Chow and the surrounding land and
water, of which she took forcible possession from a
country with which she was at peace. This was the
beginning of the new diplomacy of the ^^ mailed fiist"
toward China. China, or rather the Manchu govern-
ment, was too invertebrate to resist, and Germany was
permitted to retain the key to the exploitation of Shan-
tung, the provincial home of Confucius, with a popula-
tion of 37,000,000. In spite of the great population the
province is relatively poor, although inherently rich in
unworked coal, iron, asbestos, lead, sUver, gold, rubies,
diamonds, graphite, tin, zinc, talc, and some of the rare
earths.

In the great rush for railway concessions Germany
secured the sole right of railway construction in Shan-
tung. In this province, she gave the European powers to
understand she had marked off a special sphere of influ-
ence, although in no whit reducing her claims to favoured-
nation treatment elsewhere in the Empire. It was not till
the spring of 1899 that the German Shantung Railway
syndicate was able to secure the necessary capital to com-
mence railway construction. The first sod was turned for
the first section between Kiao Chow (Tapaduhr) and Wei-
hsien (on the Wei River) on June 2, 1899, with the cus-
tomary German ceremony. Then, after time for official
congratulations to subside, the construction of the line was
seriously taken in hand. Ballasting material was by no

388 CHINA IK LAW AND OOMMEBGE

means deficient, but all the material for rails and sleepers
had to be imported, as Shantung has been depleted of all
timber useful for such purposes.

In June, 1899, tenders were invited from native con-
tractors for the construction of seventy-five kilometers of
embankment between Tsingtao and Kaomi, and this looked
like business, but on the eighteenth of the same month a
riot took place in which the sheds and works of the Kaomi
district were destroyed. These riots can be attributed to
lack of tact on the part of the railway authorities. Riots
were repeated in February, 1900, on a large scale. Mean-
while there had been several minor disturbances. Investi-
gation proved that the people were moved by the following
considerations : —

(1) They preferred to have no railway in the sacred
province of Confucius.

(2) If the railway must be built, they desired local
interests to be considered, and the work done with the
minimum of damage to crops and farms.

(3) They desired the employment of local labour on
works in a province where such work would be a con-
sideration to a poor and large population.

(4) They protested against the importation of the low-
class Tientsin coolie, when Shantung could supply any
number from its 30,000,000 inhabitants.

(6) They demanded that ample provision be made for
the drainage of the reclaimed lowlands through which the
railway was being constructed.

That a riot should result from the culpable neglect of
Europeans to anticipate and make provision for meeting
amicably such justifiable demands shows the intolerable
ignorance of those who seek to carry out industrial enter-
prises in China.

The natives received no compensation from damage

BAILWAY TRANSIT 889

resulting from items 2, 3, 4, and 5, and the riots only
quieted down in February, 1900. Meanwhile, regrettable
loss of life and injuries had occurred on both sides, and
compensation was made for the German losses in April,
1900, but the Chinese got nothing. As a result of further
injustice and regrettable incidents rioting again broke out
in April near Kaomi, but was quickly put down, and work
was pushed ahead until June, when warnings of the coming
Boxer storm made it necessary for engineers to gain the
safety of the harbour precincts. In October, 1900, work
was again resumed, and construction trains began to run
by the end of the month to Kiao Chow. The permanent
way was built, but not ballasted, to near Kaomi by the
end of the year. So rapid was the progress made on this
section that on March 9, 1901, a formal opening of the
Shantung railway between Tsingtao and Kiao Chow, a dis-
tance of forty-seven miles of excellent road, took place in
the presence of the governor of Shantung and many other
Chinese dignitaries. June of the same year saw the rail
head pushed to Kaomi, seventeen miles distant from
Kiao Chow. Thereafter work became more difficult and
bridging a considerable item in the cost. By the begin-
ning of 1902 the section to Weihsien, which presented
many engineering difficulties, was completed and opened
with great ceremony. The bridging of the Weiho is a
credit to German engineering, as the river-bed is broad
and flat, very shallow in the winter, but a regular torrent
in the summer, and this caused many of the temporary
structures to be carried away. Weihsien, one of the most
important market-towns in the province, is in the midst
of an extensive and rich mineral belt running northeast
and southwest. The section to Changshan was opened a
year later, and from here construction proceeded at a great
rate in spite of much cutting and bridging.

890 CHINA IK LAW AKD COMMBBCB

Chaogshan is the junction from which runs the Poshan
branch of the road, to tap the coal-fields in the valley of
that name, where there are thirteen large native coal-mines
and one operated on an extensive scale by a German com-
pany. The coal from this district is at present being used
on the railway, but with increased production it must
necessarily have an important bearing on the future of
the German port of Tsingtau.

On May 15, 1904, the first train from Tsingtau ran into
the station at Chinanfu, the capital of the province of
Shantung. The length of the main line and branches
opened on this date approximates three hundred miles.

The railway from Canton to Fatshan and thence to
Samshui is part of the Hankow-Canton trunk-line, the
franchise for which was given to an Anglo-American
syndicate as far back as 1898. Soon the British element
dropped out, and the undertaking became solely one for
American enterprise, but the British minister continued
on all occasions to support the aspirations of the Ameri-
can concessionaries.

In the year 1900, just before the Boxer outbreak, the
Belgian syndicate opened negotiations with the American
syndicate for the purpose of jointly constructing the
trunk-line from Hankow to Canton, as the Americans
alleged they found great difficulty in raising the mqjiey
in New York and London. It was not, however, until
the begimiing of 1904 that certain resignations from the
board, and the filling of these vacancies by nominees
of the king of the Belgians, made the general public
aware of the fact that an American-Belgian deal had
been accomplished. Work on the line from south to
north has not yet got beyond the stage where W. Barclay
Parsons left it in 1899, namely, the preliminary survey.
But the first section of the Canton-Samshui branch was

BAILWAY TRANSIT 891

opened to traffic on November 15, 1903, and immediately
there were more demands for tickets than the rolling-stock,
then limited, could accommodate. This is a distinct con-
firmation of the statement made by Mr. Parsons to his
employers: ^^ Between Samshui and Canton, however,
there is a country in which railway operation would pay
handsomely." The opening on June 1, 1904, of the full
length of line of twenty-eight miles between Canton and
Samshui was followed by traffic receipts which far ex-
ceeded the promoters' anticipations. These receipts daily
increase with the extension of the line. Besides Fatshan
with its 750,000 inhabitants and flourishing trade, in ex-
cess even of that of Canton, the railway passes many
prosperous towns hitherto somewhat crippled for want
of rapid transit. The chief of these is Hsinam, with a
population a little under 10,000, and only less as a manu-
facturing centre than Fatshan. Canton possesses, in a
population of over 1,000,000, many men who can reckon
their wealth in seven figures, while Samshui, since it be-
came a treaty port, has grown in trade and importance
and is aided in this by the advantage of its position at
the junction of the West and North rivers.

The start made on this line has been so encouraging in
its results that the work on the main line is now being
prosecuted.

The line as surveyed, starting at Samshui in its journey
through Kwangtung, passes the following rich industrial
or market-towns : Tsing-yuan, Yingte, then west of the
prefectural town Shaochaofu, Laochang, Pingpshi, and
Yichang on the Hunan- Kwang^tung frontier. Across
the border of Hunan it must make its way over the
Cheling range, over one thousand feet above sea-level,
through a pass at an altitude of less than eight hundred
feet, then over the anthracite coal-bed lying between

392 CHIKA IK LAW AND COKMERCE

Chen Chow and Hingningyuen to Yanghsing, then to
Lijing and Hengchau, near each of which towns there
are extensive deposits of coal, iron, and copper. At
Hengchau the railway route as far as Changshafn, the
capital, follows the valley of the Siang River (which re-
minds one of the winding picturesqueness of the Liehigh
Valley Railroad). From Changsha to Yochow (40,000)
the railway has on the one side the Siang River and then
the shores of the Tungting Lake, and on the other moun-
tains stained by the various minerals with which they
abound. From Yochow the line breaks northeast to Pu
Chi, a thriving native town, and then by way of Lui
Chikow to Wuchang. Throughout the whole journey
in Hunan the route lies along a line of mineral deposit
seldom found in similar extent in any other part of the
world except Chinese Manchuria.

A survey has been made for a branch line from Samshui
to Kuilin, the capital of Kwangsi, via the cities of Wu-
chow and Pinglo, about three hundred miles.

As the railway will pass twenty-five miles to the east
of Yochow in Hunan, a branch line will be run to this
important town, while another spur of nine miles will be
run in the same province to the coal area of Siangtan.

The Canton end will link this city with the important
shipping port of Swatow via Huichow, Haifeng, and
Puning.

His Excellency Sheng Kung Pao owns a large coal-
bed at Pinghsiang in the province of Kiangsi, where it is
possible to produce over two thousand tons of coal per
diem of a high grade bituminous quality, making an
excellent coke. For the purpose of developing these
mines his Excellency had a line of railway surveyed to
Lukow on the Lu River, a tributary of the Siang River.
Work on the railway was started in 1899 without the

RAILWAY TBANSIT 893

assistance of any foreign capital, and in 1902 trains were
running over the whole distance of seventy miles, carrying
coal from the mines to his Excellency's boats on the Lu
River and bringing back machinery, etc., required at the
collieries. There never has been any hitch or disturbance
on this railway, which is operated by Chinese accustomed
to consider and conciliate local prejudice. From the very
start the native gentry and peasants desired to utilize this
railway for passenger traffic, although it was originally
built for mining development. In 1904 it was doing a
large passenger and goods traffic as well as carrying over
one thousand tons of coal per diem from the mines. So
important and valuable has this line proved that it is
being gradually extended to Shu Chao and Nan Chang
(the capital of Kiangsi) on the Kan River at one end, and
to the west it will be pushed to Changsha.

So quietly and successfully has this line been worked
that very little is heard of it, or will be heard of it, until
suddenly its importance as a trade route will dawn on
some consular official or isolated merchant. This line at
no distant date will form a branch of the Grand Trunk
line from Canton to Hankow (Wuchang) and play an im-
portant part in linking up the Empire with iron roads.

Next there is a very short line of railway from the
Tiehsanpu Iron Mines in Hupeh to the Tangtse at a point
over seventy miles from Hankow. This is run at present
simply as a mining railway, and cannot be looked upon as
one of the commercial land routes of China.

The most important railway concessions which have
been granted, but on which no work other than surveying
has been done, are as follows : —

1. Tientsin-Chinkiang, Anglo-Qerman oonoeBslon, about 600 miles.
8. ChinUaiig-Sinyang, Britlkh China oonoeBslon, aiboat 260 miles.
8. Shan^ud-Nanking, BriUah Cliina oonoeaaion, abcmt 160 miles.

894

GHIKA IK LAW AND COMMEBCE

4. Soochow-Hangchow-
Ningpo,

6. Shanghai-Hunan,
0. Kowloon-Canton,

7. Macao-Samshui,

8. Swatow-Tao Chow,

9. Tientsin-Paotingfu,

10. Tung Chow-Kaiping,

11. Peking-Kalgan,

12. Chengting-Chinanfu,

13. Chengting-Taiyuen,

14. Hankow-Chengtu,

15. ChangBha-Chenchow,

16. Nanking-Haifeng,

British China concession, about 120 mileB.
Belgian-Chinese concession, about 660 miles.
British China concession, about 105 miles.
American-Chinese concession, about 70 miles.
Chinese concession, about 180 miles.
Chinese concession, about 100 miles.
Chinese concession, about 00 miles.
Chinese concession, about 140 miles.
German concession, about 170 miles.
Russian concession, about 140 miles.
Chinese concession, about 800 miles.
Chinese concession, about 230 miles.
British China concession, about 300 miles.

As may be seen from the following, railway fares in
China are very low : —

FlBST

Skookb

TWOMD

Stitsm

SsonoH

Clam

Class

Cukm

Imperial Chinese

Tientsin-Peking

•0.03

•0.01}

$0.00^

Imperial Chinese

Tientsin-Tangku

0.02}

0.01}

0.00}

Imperial Chinese

Tangku-Yinkou-

Hsinmintun

0.02

0.01

0.00}

Imperial Chinese

Shanghai- Woosung

0.10

0.06

0.02

German

Tsintao-Chinan

—

0.05

0.02}

Luhan (Franco-Bel-

Peking-Changte

—

0.03}

0.01}

gian)

Luhan (Franco-Bel-

Hankow-Hu Chow

—

0.03}

0.01}

gian)

American

Canton-Samshui

— —

—

W^M^

The average freight charge taken as a whole for all the
lines is in round numbers 5 cents or Id. per ton mile as
against a general average for all native methods of 11
cents or 2^d. per ton mile.

The German Shantung Railway carries fourth-class
passengers at 1^ cents per mile.

BAILWAY TBANSIT 895

It may be taken that 5 cents (Mexican) is a little oyer
Id. English or 2^ cents American money.

The following particulars of the sectional opening of
the Luhan line are interesting as showing the rapidity of
present railway development in China: —

(1) Total length of the Peking-Hankow line, 808
miles.

(2) Distance between Peking and Yellow River, 440
miles.

Distance between Hankow and Tellow River, 866 miles.

(3) The bridge on the Tellow River will be 2 miles
long.

(4) The railroad from Peking to the Yellow River ex-
tends actually for 587 kilometers, to near Weihuifu.

The railroad from Hankow reached the Tellow River
in June, 1904.

(5) The railway crosses the provinces of Pechili,
Honan, and Hupeh.

(6) The north section, from Peking, will reach the
Yellow River next March, joining the railroad from
Hankow.

(7) Work on the Yellow River bridge is in full activity
and will be completed by next July.

(8) The section from Peking to Paotingfu (97 miles)
has been open to traffic since October 1, 1899.

The section from Paotingfu to Chingtiugfu (175 miles)
has been open to traffic since January, 1902.

The section from Chingtingfu to Shuntef u (252|- miles)
has been open to traffic since September, 1903.

The section from Shuntefu to Changtefu (836|^ miles)
has been open to traffic since November, 1904.

(9) The section from Hankow to Koangchoei (102 miles
from Hankow) has been open to traffic since December,
1901.

896 CHINA IN LAW AND GOMMBBOX

The section from Koangchoei to Sinyangchow (146
miles) has been open to traffic since August, 1902.

The section from Sinyangchow to Tchosaugsien (199
miles) has been open to traffic since September, 1903.

The section from Tchosangsien to Yentcheng (256
miles) has been open to traffic since May, 1904.

The section from Tentcheng to Chuchow (292 miles)
has been open to traffic since November, 1904.

The opening of traffic from Peking to Hankow miust
wait until the Yellow River bridge is completed.

In June, 1905, the Hankow to Yellow River section
will, however, be open to all classes of traffic.

(10) In 1903, on both sections of the line open to traffic,
north and south, the carriage of passengers amounted to
800,000, all classes, and the carriage of goods and mer-
chandise amounted to 850,000 tons.

INDEX

Absttoin, opportunity lor, in north-
em Chins, 332.

Adoption customs, 125-128.

Adultery, punishments for, 121.

Advertising, methods of, suggested,
261-263.

Agents, regulations applying to li-
censed, 93-94; purchasing, 260-264.
See Go-between.

Agnates and cognates, Maine quoted
concerning, 129-131.

Agriculture, as a religion, 6; wasteful
system of, 6-7, 14-15 ; area of land
for, diminishing, 16 ; in Manchuria,
331 ; in MongoUa, 331-332 ; in Hunan,
341 ; in Amur valley, 344-345.

Aigun, treaty of (1858), 350.

Alabaster, " Notes and Commentaries
on Chinese Criminal Law'* by,
quoted, 79-81, 83-^, 8&-86, 89-90.

Amur (Amoor) River, variety of
names for, 314 ; length of, 344-345 ;
tributaries, and towns on, 345-350;
Russian exclusive possession of,
360.

Ancestor-worship, filial piety mis-
named, 225.

Antimony, in Yunnan, 18; in Hupeh,
337.

Antung, treaty port, 353.

Arabs in China, 194, 223; more highly
esteemed than later foreigners, 239.

Argun River, 344, 349-350.

Arimaspians, family of men called,
22-23,27.

Army, management of Chinese, 46-47 ;
the ancient Mongolian, 50 ; organiza-
tion of, in Manchuria, 51-52.

Arson, punishment of, 88-89.

Artisans, work of early Chinese, found
in Europe, 223.

Asbestos, in Shantung, 387.

Associations, money loan, 246-249;
business, 246-253; capitalists', 24^
250 ; mercantile, 260-251 ; names
given to, 252; legal status of, 263.
See Guilds and Trade-unions.

Bail, customs connected with, 189.

Ball, Dyer, on fengshuU 264-265.

Ballads, Book of, 24, 25.

Bamboo Palisade, neglect of, 317.

Bandits, 315, 318, 324, 330.

Banishment, punishment of homicide
by, 77, 78; for arson, 88.

Bank, Russo-Chinese, 381, 382.

Banking, method of establishing a
business in, 275-276 ; Wong Kai-
Kah quoted on, 276-282 ; method of
conducting business of, 277-289 ;
natives of Shansi leaders in, 282-
284; origin of system of, 301-^302.

Bank notes, 278-279.

Bankruptcy, laws relating to, 96-97.

Banks, association of, with pawn-
offices, 257-258 ; national, 275 ; classes
of, 277; "watchers" of, 278, 279;
runs on, prevented, 289; at treaty
ports, 290.

Bargain money, 259-260.

Beggars, associations of, 251.

Beheading, punishment of homicide
by, 77; for rape, 87; for irregular
marriages, 117.

Belgian railway syndicate, 380-384.

Blackburn Commission, 216-217, 341,
342-343.

Board of Civil Affairs, 64^65.

Board of Education, 65.

Board of Public Works, 47, 67.

Board of Punishment, 47, 67.

Board of Revenue, 45, 15<), 169.

Board of Rites, 28, 4.5-46, 66.

Board of War, 46-47, 52.

397

898

INDEX

Board of Works, 47-48.

Boards, administratire, 45-49, 64-09;
five admlnistratiye, at Mukden, 51.

Bond, British China Corporation's
railway, 372-373, 381.

Bonds required from suspicions char-
acters, 177.

Book of Odes, 24, 25, 132.

Book of Bites, 4ft.

Boundary marks of land, 137-138.

Bourne, lir. Justice, quoted, 335, 340.

Boxer movement (1900), 230, 384, 389,
390.

Boycotts, by guilds, 214-217 ; by trade-
unions, 242-244.

Bridges, remissness in care of, 48 ;
Russian railway, 377, 379; German,
over Weiho River, 389.

Brine wells, in Szechuan, 18.

Brinkley, Captain F., quoted, 171-174.

British China Corporation's railway
bond» 372-^3 ; Russians protest
against, 381.

British Supreme Court, Shanghai, 141,
195, 197, 199.

Brokers, regulations appljring to, 93-
94. See Gk>-between.

Bronze, early coinage of, 291 ; con-
fusion between gold and, 294-295.

Buckwheat, Mongolian, 331.

Buddhism, introduction of, 31.

Burden of proof in lawsuits, 189.

Burma Frontier Treaty, 342.

Camels, transport of goods by, 230;
cost of transportation by, 231, 331 ;
on Mongolian trade routes, 323-324 ;
at Dolonor, 32&-327 ; in Manchuria,
331 ; Mongolian, 350.

Campbell, C. W., travels of, 326, 328.

Canals, neglect of, 48, 158, 316 ; trans-
portation of goods on, 227-228, 357-
362.

Canning industry, opportunity for,
north of Great Wall, 332.

Canton, 2; agriculture about, 19; vice-
roy at, 41-42 ; railway from, to Sam-
shui, 390-393.

Canton River, course of, 341-342;
towns on, 342; Blackburn Commis-
sion report touching on, 343.

Ca^talists' associations, 249-250.

Caravans, ancient Chinese, 311, 312;
route of, from Peking to Yarkand,
315.

Carolus dollars in China, 302-305.

Carrying companies, 230; associatioiis
of, 251.

Carts, transport of goods by, 228, 331 ;
damages to roads from, 320, 330.

Cash, history of Chinese, 296-298.

Cassini Convention, the, 374-375.

CatUe-raising, 324, 332, 349, 360.

"Caution money," 147.

Censors, imperial, 54-65, 68; relation
to Emperor, 55-^56.

Chang Chia Tung, rapid at, 355.

Changchow, centre of salt production,
165-166.

Changchunfu, town, 355^

Chang K'ien, traveller, 28-a), 292, dOO,
309.

Changshan, railway Junction at, 390.

Changtzin, salt centre, 165-166.

Chan Pal Shan (Long White Moun-
tain), 347, 366.

CJhaoyangpo, town, 355.

Charcoal, at Kirin, 346.

Cheapness, influence of, in Chinese
trading, 232.

C^efenghsien, city, 354, 355.

Chekiang, Grand Canal stations in»
359.

Cheng (%ow, railway to, 384.

Chengtefu, imperial road to, 325.

Chengtu, capital of province, 338.

Chik, definition, 298; variation in,
299.

Children, traffic in, 20; parents and,
96, 102, 123; of concubines, 114, 123;
of divorced parents, 121; murder
of, 123, 127; filial duties of, 124:
adopted, 124-128; protection of
stray, 128-129; illegitimate, 129;
responsibility of, 177, 189, 225.

Chili, province, coal-mining in, 12;
affairs of, administered by a viceroy,
41; salt in, 166; roads of, 322, 323;
Grand Canal stations in, 359; Chi-
nese Imperial Railway in, 361, 371;
railway riots in, 384.

Chinese Eastern Railway system, 331,
346, 350; origins of, 374-375; con-
struction of, 377-378.

IKDEX

399

Chinese Imperial Railway, 361, 371;
fares on, 394.

Chingwantao, railway to, 372.

Ghinkiang, treaty port, 335, 340, 360;
salt abont, 166; canning indostry
and trade-nnion incident at, 243.

ChobiUtu, payment of, 173.

Chop, 232; meaning of term, 268-269;
method of keeping and using, 270;
court decisions relating to use of,
270, 272-273; of tUpao, 271-272; of
eompradore, 272-273; on fangtans,
273 ; on bank orders, 273-274.

Christianity, Blang-hi's edict tolerat-
ing, 28; in seventeenth century, 32.

Chungking, treaty port, 337, 340.

Cinnabar, in Hupeh, 337.

Circuit, Chinese administrative divi-
sion, 38-39.

Civil Board, the, 45.

Clan, the, marriage within, forbidden,
116.

Clans, grants of land to, 134-135.

Clansmen, the imperial, 61-62.

Clearing-house, Shanghai, 287.

Clerks, magistrates', 36-37.

Clubs. See Associations.

Coal, in north China, 11-14, 349; in
south China, 17; in Szechuan, 18;
transportation of, by camels, 230;
to north of Fengnlng, 326; in Hu-
peh, 337 ; Ho Chow a trading centre
for, 339; in Kirin province, 346, 347,
378; in Manchuria, 349; about Che-
fenghsien, 354 ; on Lutai Canal, 361 ;
on Ussuri railway line, 379 ; in Shan-
tung, 387 ; in Poshan valley, 390 ; on
Canton-Samshui line, 391-392 ; Sheng
Kung Pao's mines of, in Eiangsi,
392-393.

Coal-mining companies, 12-13, 384-
386.

Coasting traffic, 362-366.

Code of Chinese laws, 70-72; extracts
from, 73-110.

Cognatic relationship, 129-130.

Coinage, history of, 291-295, 296-299;
silver as the standard, 300-307 ; gold
supplanting silver, 308.

Coins, first issue of, 296.

Combines, business, 246-263. See Aa-
Bociations.

Compradore, the, 238, 266-268; chop
of, 272-273.

Concessions, foreign, at Shanghai,
197-204; at Tientsin, 353; table of
railway, 398-^94.

Concubinage, filial piety doctrine re-
sponsible for, 123.

Concubines, 63, 112; selection of, 114;
penalty for degrading wife to rank
of, lli-115; children of, 114, 123.

Confucius, 62.

Constables, local, 35.

Consular courts, 194, 197, 200-202.

Contracts, of marriage, 113-114; of
adoption, 124-125; land, 147-152, and
see Deeds; Chinese regard for, in
trade relations, 224-226; railway,
372-373, 380-381.

Coolies, associations of, 261.

Coolie transport, 228; cost of, 231.

Copper, 14; in Yunnan, 18; in Hupeh,
337; in Kirin province, 347; on
Canton-Samshui line, 392.

Corruption, oflidal, 37, 169-160, 167,
314, 371.

Corvie, the, in China, 174.

Cosmas, Greek merohant monk,
223.

Councils of central government, 43-
45; division into administrative
boards, 45.

Counterfeiters, treatment of, 289-
290.

Courts, gradation of, 177-178; open-
ness of proceedings in, 179; respon-
sibility of, 180, 18&-187; suits in,
187-190; corruption in, 190-192; for-
eign, 193-204; consular, 194, 197,
200-202 ; status of business associa-
tions in, 253.

Credit, Chinese system of, 232-234.

Creeks, treatment of, for navigation,
315-316; transportation by, 357-
362.

Currency. See Coinage.

Cushlng, Caleb, 194-196.

Customs, internal, 162-165. See Likin
tax.

David, Abb^, 13.

Davis, Sir John, quoted, 239-240.

Debtors, treatment of, 95-06. .

400

INDEX

DeedBoflaad, form of, 185-187; "rad''
and ** white,*' 140; Chlnate distin-
gniflhed from English, 141-142 ; form
prescribed for (1783), 161; loos of,
102.

De Qnignes, trayeller, quoted, 318.

Department, the Chinese, 87-^.

Department of Imperial Body-guard,
60.

Department of Pastnrage, 61.

Diamonds, in Shantung, 387.

Dishonesty, oi&cial, 87, 188, 314, 371;
in ooUeetion of taxes, 169-160; in
internal revenue department, 167.

Districts, Chinese {hieru), 36-M.

"DiTlne right" in China. 66.

Divorce, causes for, 121 ; effect of, on
husband, wife, and children, 121-
122.

Dogs, breeding of, 826, 860.

Dollars, Spanish, in China, 802^803;
Carolus ("pillar")* 802-306; Mexi-
can, 806; change of unit to taels,
806.

Dolonor, roads and inns at, 826-327;
horse fair at, 327.

Donkeys, in Mongolia, 860.

Doolittle, on go-betweens, 287-238.

Dragon-headed Club, the, 262.

Droughts, 6, 19-20.

Dust^torms, 7.

Duties, customs, 162. See Likin tax.

Edkins, Dr. J., dted, 168, 169, 182.

Education, Board of, 66.

Emperor, Chinese, position of, 83-34,
169; appointment of officers by, 43;
censors directly responsible to, 64t-
66 ; restrictions on power of, 6tMS8,
70; daily record of behaTiour of,
68-60; two branches of kindred of,
61-62; selection of wife for, 62-63;
as proprietor of the soil, 132-133;
roads reserved for, 322-323.

Empress Dowager, 66, 160, 168, 323.

Equity of redemption, principle of,
99-100.

Eunuchs, power of, 68, 116 ; family life
of, 116-11&

"Ever-eacred Duke," title of, 62.

Examinations for public service, 36, 40,
66,66.

Exchange, banking, 287-289.
Exclusion, policy of trade, 289-242.

Families, grants of land to, 13^136.

Family, the, in Chinese system of gov-
ernment, 34-36, 7^74; definition of
the, 111; marriages within, forbid-
den, 116 ; the military, so-called, 117 ;
" of the people," 117 ; responsibility
of, 177, 189, 226; of Shansi bank
clerks, 28^283.

Famines, cause of, 20.

Fanchen, town, 337.

Father, position of, 96, 102, 114, 123,
1^.

Fenghuahsien, town, 366.

Fengning, roads and conditions about,
326.

Feng$hui, consideration of, 264-266,
370.

Filial piety doctrine, 123, 124, 226.

Fire-engines maintained by guilds, 211.

Foreign customs tax, 162.

Foreigners at Shanghai, 197-196.

FoMtook, See Go-between.

Foukiang River, .340.

France, shipment of silver from, to
China, 306; railway enterprises of,
380-381,383.

Fraudulent sale, punishment for, 107-
110.

French Concession, at Shanghai, 198,
202-204; at Tientsin, 363.

Fukien, salt produced in, 166-166.

Generals, Tartar, in provinces, 43;
in Manchuria, 61-62.

Germany, shipping statistics of, 866,
366; Chinese concessions to, 386-
387; railway construction by, 387-
390.

Gerrare, "Greater Russia" by,
quoted, 373-374.

Gillespie, quoted, 269.

Gioro line, the, 61.

Goats, Mongolian, 360.

Go-between (foetook), omnipresence
of the, 138-139, 224; distinguished
from middleman, 234-235; business
of, described, 235-239; union of fol-
lowers of vocation of, 236, 238 ; mis-
I understood by foreigners, 237-238.

INDEX

401

€k>ld, U; ornaments of, from China,
228,293; confusion between bronze
and, 2M-296; becoming the stand-
ard in China, 308; mining of, dis-
couraged, 308; in Yunnan, 312;
to north of Fengning, dSSS; in
Hupeh province, 337; in Kirin
proyince, 347, 378; on Ussuri rail-
way line, 379; in Shantung, 387.

Goold-Adams, Major H., 326.

GoTemor, powers of, in Manchuria,
52-^.

Govemor-generals (viceroys), 41-42.

Governors of provinces, 3^-40; powers
of, 43.

Grain, taxes on, 109, 172-173; distil-
lation of, &n-332.

Grain-raising, 18, 324, 325, 331-332, 840.

Grand Canal, neglect of, 47-48, 158;
Tientsin at head of, 352, 859; stu-
pendousness of, 357-358; antiquity
of, 358; length of, 358-359; stations
on, 359; improvement of , suggested,
359-300.

Grand Council (Imperial Privy Coun-
cil), 43, 44-15, 64; Tnjmg4i Yamen
connected wiUi, 4Q.

Grand Secretariat (Imperial Cabi-
net), 43-44, 64.

Graphite, in Shantung, 387.

Great Britain, Supreme Court of, at
Shanghai, 141, 195,197,199; treaties
between China and, 19&-196; rate
of decrease of trade with China,
262; shipping of, in China, 363, 364,
366; railway undertakings of, 373,
374, 880, 390, 393-394; railway
agreement with Russia, 381-382.

Great Wall, neglect of, 317.

Guard-houses, dangers of, 318.

Guild, piece-goods, 233; go-betweens*,
235; money-chsAgers', 276; bank-
ers*, 284-287.

GnUds, likin officials and, 163-164;
origin, 206; object, 206-207; offi-
cers, 207-208; regulations, 207-209,
210-211; membership limited, 206;
inspections of mercantile establish-
ments' books by, 209; settlement
of disputes by, 209-210; recovery
of stolen property by, 211 ; attitude
toward monopolies, 212-213 ; as boy-

2d

I cotters, 214-217; limitations of
benefits from, 214, 216, 220-221;
influence on foreign business in-
terests, 216-218; relations with
government, 218-221.

Habeas eorptis, Chinese equivalent of,
182.

Handcarts, transport of goods by, 228 ;
cost of transportation by, 231.

Handicrafts, early Chinese, 223.

Han Emperors, 9, 26, 28, 292, 300;
Grand Canal at time of, 358.

Hangchow, treaty port, 359.

Hankow, 336-337 ; national bank at,
275; flood rise at, 338; as distribut-
ing centre, 340-^341 ; railways to, 380-
384, 390, 393, 394, 395.

Han River, 13, 336, 337.

Harbarovsk, town, 346.

Harbin, military road to, 324 ; mush-
room growth of, 845, 376-377.

Hart, Sir Robert, 160-161, 162, 167.

Head-man (ti-pao), the, 34^35, 75;
connection of, with land transfers,
139-140; duties of, in lawsuits, 187-
188; chop of, 269, 271-272; term of
office, 272.

Hehlungkiang, province, 61, 347.

Highways, 19-20; neglect of, 47, 158.
See Roads.

'* Historical Record" (Shi-ki), Chang
K'ien's, 28.

History, daily recording of, 58-60.

Hoang, Peter, quoted, 147-148, 150-151.

Ho Chow, town, 339.

Homicide, classes of, and punish-
ments, 76-86.

Honan, coal in, 13, 386.

Hongkong, 2; effect of, on Canton
River, 342.

Horses, at Dolonor, 327 ; in Shilka val-
ley, 349.

Hosie, Alexander, dted, 325, 330, 346-
347.

Housebreaking, legal principles as to,
89-90.

Housebuming, crime of, 88-89.

House tax, the, 173.

Howarth, cited, 27.

Hsiangtan, proposed treaty port, 841.

Hsiang Yang, town, 837.

402

INDEX

Hsihohin, town, 337.

HBlnam, town, 391.

Hirinmfatoa, railway to, 8T3.

Huai, salt In, 166.

Hoaltehsien, town, 35S.

Hue, E. R., quoted, 190.

Holan Rl^er, 344.

Hulantien, town, 345^346, 375.

Hanan, proYlnoe, 3, 13, 336, 341, 386.

Hun Ho RiTer, 355.

Hnpeh, province, 337, 341; railway

In, 383, 384; iron in, 393.
Hurka River, 344, 345.
Hwang-ho (Yellow) River, 7 ; nnnavi-

gablllty of, 15 ; power of current of,

357.
Hwang Li, Emperor, 55.
Hwang-pu, creek, 340, 360.
Hwangtl, Emperor, 317.

Ichang, treaty port, 340.

Ifenghslen, 361.

Iman River, steamer transportation
on, 380.

Infanticide, 123, 127.

Ingoda River, 344.

Inheritance, sons* precedence in, 126 ;
rules of, applying to land, 144-146.

Inns, Mongolian, 327.

Interest, l^al provisions concerning,
101-104; banking regulations re-
lating to, 287.

International Settlement, the, at
Shanghai, 196, 202-201.

Iron, 13 ; early employment of, 295 ;
in Hupeh, 337, 393; in Klrin prov-
ince, 346, 378; on Ussuri railway
line, 379; in Shantung, 387 ; on Can-
ton-iSamshui line, 392.

Italy, represented in Peking Syndi-
cate, 384-385.

Jamieson, George, cited, 116, 117, 140,
142-143, 16&-166.

Jamieson, J. W., '* Chinese Collection
of Leading Cases" by, quoted, 104-
110.

Japan, trade of, with China, 262 ; re-
cent currency history in, 308; trade
of Tientsin with, 353 ; shipping trade
of, with China, 363-364, 366.

Jehol district, 313, 325, 329, 354.

Joint-stock oompanies, laws concent-

ing, 94-95.
Judges (prefects), 38; provincial

criminal, 40. See Magistratea.
Junks, traffic on, 337, 338, 339, 347,

355, 360 ; cost of transport by, 230.

Kailingkiang River, 339.
KaiUng River, 339.
Kalgan, conditions at, 328.
Kanchuck, town, 312.
Kang-hi, Emperor, 28, 191.
Kankiang River, navigability of,

336.
Kansu, province, 5, 13, 341.
Kan Ying, traveller, 30.
Kaomi, railway riots at, 388, 389.
Kashgaria, province, 341.
Khor River railway bridge, 379.
Kiangnan, province, troops settled in,

after Taiping robellion, 10.
Kiangsi, province, 3; coal in, 392.
Kiangsu, towns of, 335; waterways

of, 335-336; Grand Canal stotions

in, 359.
Kiating River, 338.
Kidston, G. J., travels of, 326, 328.
Eien-lung, Emperor, 152-153; canal

buUt by, 361.
Kin, definition, 292, 297.
Kinder, R., railways constructed by,

361, 371, 382.
Kingsmill, T. W., 32; quoted on an

early trade mission, 310-311, 312.
Kirin, province, 51; Chinese Eastern

Railway in, 374, 377-378.
Elirin, town, traffic from, 345; d^

scription of, 346-347; railway to,

377-378.
Kiya River railway bridge, 379.
Kongmun, town, 342.
Korea, route from Mukden to, 330.
Koxinga, 62.
Kuang Yuen, town, 339.
Kublai Khan, Emperor, 9, 31; wives

and concubines of, 63; connection

of, with Grand Canal, 358.
Kuikiang, trade of, 335, 336, 340.
Kuiyang, town, 337.
Kuntaoho River, 354.
Kwang Hsu, Emi>eror, 310.
Kwangsi, province, 2, 3, 342.

INDEX

403

Kwangtnng, province, 2, 3.
Kweichow, province, 396, 337, 341.

Land, theory of Emperor's proprietor-
ship of, 132-133; military tenure of,
133-134 ; grants of, to clans, 134-135 ;
method of obtaining government
grant of, 135; transfer of, by deeds,
136-142, 151-152; boundary marks
of, 137-138; chop of ti-pao in trans-
actions in, 139-140, 271-272; pur-
chase of, by foreigners, 140 ; customs
relating to, at treaty ports, 140-
141; transfer of, by mortgage, 142-
144; rules of succession to, 146-146;
leases of, 146-149; occupied by ten-
ants, 146-151; rents from, 147-149;
two classes of, formed by alluvial
deposits, 150-151 ; taxes on, 155-156,
157-158, 161-162; taxation of, of In-
ternational Settlement, 199; as se-
curity in banking transactions, 281.

Laohokou, town, 337.

Law, codification of, 70-72; criminal,
72-92; code of civil, 92-110; family,
111-131; land, 132-153; administra-
tion of, according to recorded cases,
176, 181; courts of, 177-192.

Lead, 14; in Hupeh, 337; in Kirin
province, 347 ; in Shantung, 387.

Li, defined, and variation in, 299.

Xiao Ho River, 2, 353; tributaries and
towns on, 354-355.

Llaoyang, town, 355.

Likin tax, the, 162-166; treaties bear-
ing on, 165, 336, 343; farmed out to
guilds, 219-220 ; Blackburn Commis-
sion quoted on, 342-343; trade ex-
pansion hindered by, 361.

Li Kwei, codification of laws by, 70.

Li Shimin, Emperor, 9.

Loan associations, 245-249.

Logs, on Amur River, 347.

Luhan Railway, 380-^84; statistics of
constructiou, 395-396.

Latai Canal, 361.

Magistrates, district, 34-36; staffs of,
36-38 ; punishment of, for erroneous
decisions, 180, 187 ; abuse of powers
of, 190-192; of mixed courts, 199-
200.

Maguire, Charles R., mining engineer,

333,
Maine, "Ancient Law" by, quoted,

129-131.
Manchuria, 2; trade possibilities of,
60-51; the three provinces of, 51;
military system of, 51-^2; govern-
mental subdivisions in, 53; mule-
teer carts in, 231 ; roads in, 321, 323,
326,329-332; minerals in, 330; agri-
culture and cattle industry in, 331-
332; rivers of, 344-367; boundary
line of, fixed by treaty, 349-560;
railways in, 374-380.

Mandarins, educational, 36. 5ee
Magistrates.

Manslaughter, in Chinese code, 79-81.

Mantsz race, 8-9.

Mao Chow, town, 338.

Maps, Franco-Belgian railway, 383.

Marriage, customs connected with,
63, 112-114; age for, 112, 115; im-
pediments to, 115-119; to deceased
wife's sister, 116; restrictions on
officials', 118; contracts, 119-120;
dissolution of, see Divorce.

Match-making, Chinese, 63.

Mayen River, 344.

Measures, guild regulations concern-
ing, 210; history of, 298-299; dis-
crepancies in, 299-300.

Meiling range of mountains, 17-18.

Mencius, 292, 293-294.

Middleman (ffombeenman) distin-
guished from the go-between
(fostook), 234-235.

Middlemen, in land transactions, 138-
139.

Military establishment, provincial, 43.

Minerals, in Manchuria, 3.'^; in
Hupeh, 337 ; in Yunan, 341 ; in
Yalu valley, 356 ; to Shantung, 387 ;
on Canton-Samshui line, 391-392.

Mln River. 337-338.

Mints, 280-281.

Missionaries, at Kalgan, 328.

Mixed courts, at Shanghai, 195-196,
199-200, 203-204.

Mohammedanism in China, 223.

Mohammedans, Chinese, in Manchuria
and Mongolia, 327; at Sungpan,
338; at Paoning, 839.

404

INDEX

Mollendprff, on impediiii«nta to nuir-
riage, 116, 117, 119; on adoption,
12^126, 126, 127.

Money, primitiye contriTances regard-
ing, 291-296; flitt coinage of, 296w
See Coinage.

Money-changers, 276.

Money loan associations, 246-249.

Mongolia, muleteer carts in, 231;
trade routes in, 323-<S27; explora-
tions in, 325-^29; agricultnre and
catUe industry in, 331-332, 300.

Mongolian dogs» breeding of, 326,

Mongols, confusion between Chinese

and, 22>23, 27.
Monopolies, guilds' attitude toward,

212-213.
Monsoon, the, 2.
Mortgages, law as to, 96-101, 109-110,

133, 142-144.
Mountains of China, 2-^.
Mourners, associations of, 251.
Mourning, period of, 118, 122.
Maw, definition, 147, 299.
Mukden (Feng-t'ien), 61, 3B3; gorem-

ment of, 63; roads to and from,

330-331 ; situation, 355.
Mule carriage of goods, 229, 231 ; cost

of, 331.
Mules, in Mongolia, 850.
Murder, distinction between man-
slaughter and, 79-81; of infants,

128, 127. See Homicide.

Nanking, Ticeroy at, 41-42; situation
of, 835.

Nanpu, city, 839.

Neighbours, responsibility of, 7i-75,
in, 189.

Nephews, adoption of, 124-125.

Newchwang, 2 ; bean-oil and bean-cake
mills at, 242; condition of roads
around, 321; opening of, as treaty
port, 355; railways to, 372, 375.

Nickel, in Hupeh, 337.

Nikolsk, railways at, 379.

Ningpo, guilds about, 206.

Nobility, titular, 61-«2.

Nonni River, 344, 345.

Notes, banks', 278-279.

Nnan, town, 846.

Oats, Mongolian, 881.

Obligations, Chinese regard for fulfil-
ment of, 224-226; failure to dis-
charge, by banks, 288-289.

Odes, Book of, 24, 25, 132.

Office of Ceremony, 60.

Oflice of Worlts Department, 61.

Officers, Manchurian army, 52.

Officials, "expectant," 36; district,
36-38; dishonesty of, 37, 159-160,
167, 314, 371; salt department, 37;
yatnen, 37 ; department (prefecture),
38; circuit, 38-39; provincial, 3(M0;
viceroys, 41-42 ; appointment of, 43;
military, of provinces, 43; of the
six administrative boards, 45-49;
punishment of defaulting, 105-106;
marriage restrictions of, 118; chop
used by, 273.

Olio custom, 224.

Opium taxes, 162.

Ox-wagon cariying, 327.

Packing, methods of, in transporta-
tion of goods, 228-230 ; cost of, 231.

Pal Shui Chiang, town, 340.

Pai Shui Ho River, 340.

Pan C'hao, traveller, 30.

Paoning, city, 339.

Paresean inhabitants, 23, 25.

Parents, children and, 34-35, 84-85, 96 ;
absolute power of, 123.

Parker, E. H., quoted, 160-171.

Parsons, W. Barclay, 390, 391.

Partnerships, laws relating to, 94-98.

Pavement of roads, 319.

Pawnshops, three classes of, 253-264;
laws relating to, 255 ; association of,
with banks, 257-258 ; used for stor-
age purposes, 259.

Pay-days, 232-234.

Pearl River, 2. See Canton River.

Pechili, province, 2.

Peihan Railway, .380-384 ; statistics of
construction, 395-396.

Peiho River, 2 ; conservancy of, 351.

Peking, garrison at, 46, 49; bad sani-
tary ^condition of, 47 ; character of
civil government of, 49; judiciary
board at, 182-183; roads to and
from, 310, 315. 323-325; railways
centring at, 372, 880-384, 894.

INDEX

406

Peking carts, 229, 231.

Ftking Gazette, newspaper, 75.

Peking pug dogs, breeding of, 326.

Peking Syndicate, 13, 3M-^86.

Peking-Tientsin Railway, 302.

Penal Code, Chinese, 47.

Perjaxy, definition and penalties, 90-

91.
Petition, right of, 08, 182.
Petroleum, in Szeehnan, 18.
Physicians, conriction of, for maii-

slaoghter, 81.
Piece-goods guild, 233.
PUlar dollars, 303.
PingChnen roads, 324-820.
Platinum, in Hupeh, 337.
Polyandry, custom of, 12^123.
Polo, Marco, 8, 29, 31, 63.
Ponies, Mongolian, 300.
Porcelains, 223.

Port Arthur, Russians occupy, 870.
Potteries, 223.
Prefect, ofiice of, 38.
Prefectures (departments), 37-38.
Priests, marriage of, 119.
Princes of the Iron Crown, 61.
Prisons, 181-182.
ProYince, Chinese administradYe diri-

sion, 30-40; military establishment

of, 43.
Provinces, the three Manchurlan, 01.
Pu, measure called the, 299.
Public works, neglect of, 47-48.
Public Works, Board of, 67.
Pnk'usi, town, 347, 348.

Quicksilver, in Yunnan, 18.

Rafts, transportation of goods by, 348,
304.

Railway, Chinese Eastern, 831, 846,
350, 374-370, 377-378; Peking-Tien-
tsin, 302; Peking-Tung Chow, 303;
Seoul-Wiju, 356-307; Chinese Im-
perial, 361, 371, 394; the first. 370;
Woosung-Shanghai, 370-371 ; Vladi-
vostock-Harbarovsk ,878-379 ; Ussuri
line, 379; Peihan (Peking-Hankow),
380-384, 390-896; Luhan, 382, 39&-
396; German Shantung, 386, 387-
390; Hankow-Canton, 390, 383, 394,
390.

Railway Bond Contract of British
China Corporation, 872-373, 381.

Railway ooncMsianB, 13; tabulated,
303-^94.

Railway fares, 394.

Railway riots, 384; causes of, 388-889.

Railways, introduction of, into north
China, 20; opposition of carrying
companies to, 230; possibilities of,
369; central government's attitude
toward, 371 ; Manchurlan, 374-880.

Rape, principles concerning, and pen-
alties, 86-88.

Relationship, doctrine of agnatic and
c<^atic, 129-131.

Religion, marriage unaffected by dif-
ference in, 119.

Rents, from land, 147-149; taxes on,
148, 149, 162; penalties for non-
payment of, 149.

Resthouses, 318; recent erection of
imperial, 822.

Restitution of stolen property, 104-107.

Revenue, sources of, 162.

Rice, growth of, in south China, 11,
18-19.

Rice crop the basis of taxation, 109,
171-173.

Richthofen, Baron von, quoted, 318.

Right of petition, 08, 182.

Rites, Board of, 28, 4ft-46, 66.

Rites, Book of, 46.

Rivers of China, 2-3; description of,
334-307; Blackburn Commission
quoted on, 343; figures of traffic
on, 362-364.

Roads, lack of, in north China, 10,
19, 108; of south China, 19; neglect
of, 47, 108, 319; excellence of early,
810; routes of early, 810, 812; grad-
ual disappearance of, 811-312; mod-
em traces of, 812-813; importance
of, admitted, 818-314 ; to and from
Yarkand, 310; pavement of, 319;
regulations concerning imperial,
822; Mongolian, 320-^329; Manchu-
rlan, 329-332; military, of Shansi
and Shensi, 332-333.

Romans, attempt of ancient, to estab-
lish trade relations with China, 222-

Rubies, in Shantong, 887.

406

INDEX

RoBsUns, improvement of roads bj,
S21; at Urga, 328; work of, at
Harbin, 346, 375-377; at Tsitsihar,
348; on Shilka River, 348-349; on
Amur River, 300; shipping of, in
China, 364, 366; railway activities
of, 373-380, 381-382, 394 ; protest of,
against British China Corporation
bond, 381.

Salt, deposits of, 15; in Szechoan, 18;
officials connected with transactions
in, 37; taxes on, 162, 165-167; sys-
tem of production and cost of, 165-
166 ; Nanpu a trading centre for, 339 ;
aboat Tientsin, 353.

Samshui, treaty port, 342; railway
from Canton to, 390-383.

8am-su Kiang River, 386.

Sassoon Company v. Wong Gan Ylng,
case of, 27^273.

" Sea-quelling Duke," title of, 62.

Seoul-Wija Railway, 356-367.

Servants, position of, in family,
111.

Shanghai, 2; mixed ooort at, 39;
British Supreme Court at, 141, 195,
197, 199; the taotai at, 167; French
Concession at, 197, 202-204; Inter-
national Settlement at, 198; national
bank at, 275 ; bankers' guild of, 285-
287; Hankow compared to, 340; pro-
jected railways to, 393, 394.

Shanhaikwan, railway at, 372.

Shansi, coal in, 13, 386; salt produced
in, 165 ; bankers from, 282-284 ; mili-
tary roads of, 33^-333.

Shantung, immigration from the
northwest into, 10; coal in, 12; re-
cession of fertile lands in, 16 ; con-
dition of roads in, 313; Grand Canal
stations in, 369; German exploita-
tion of, 386-390.

Sheep, around Sungpan, 338; around
Tung Chuan, 340; in Shilka valley,
349; in Mongolia, 300.

Sheng King, province, 51 ; government
of, 51-53.

Sheng Kung Pao, coal-beds owned by,
392-393.

Sheng-BiaoKay Treaty of Commerce,
368.

Shensi, province, 6, 841; emigrants
from, settle in Yunnan, 10; coal and
iron deposits in, 13; military roads
of, 332-333.

" Shi-ki," Chang K'ien's, 28.

Shilka River, 344, 34^-349.

Shinhing, town, 342.

Ship-brokers, judicial supervision of,
93-94.

Shipping, statistics of, 362-367.

" Shoes " of sy OM, defined, 234 ; mints
for coining, 280.

Shroff, the, 266-268.

** Shu King," the, 8, 24, 292, 294.

Shun, Emperor, 116.

Shun Ching, town, 339.

Shunchi, Emperor, 71.

Siang River, 336, 392.

Siaochwen, "small seal character,"
296.

Silk faidustry, 5, 6.

Silver, in Yunnan, 18 ; used first only
for ornaments, 294 ; the commercial
currency of modem China, 300 ;
arrival of Spanish, from Philippines,
302; importation of, from France,
306; in Hupeh province, 337; mined
in Kirin province, 347; in Shan-
tung, 387.

Sirha Man Ho River, 354.

Slaves, position of, in family. 111;
marriage of, 119.

Sleeve dogs, breeding of, 326.

Smugglers, salt, 166.

Snake casting its Skin Club, the, 252.

Soochow, treaty port, 359.

Spirito, distillation of, 332.

Staunton, Sir George Thomas, 72.

Steamers on waterways, 334-338, 340,
342, 345, 346, 348-352, 354-355, 359,
360,362-367.

Stolen property, restitution of, IM-
107; recovery of, by guilds, 211.

Storage, guild regulations concerning,
210.

Strangulation, punishment by, 77 ; for
rape, 87 ; for adultery, 121 ; for pre-
ferring anonymous complaint, 178.

Succession, to imperial throne, 65-56 ;
rules of, 144-146.

Suifu, town, 337.

Sungari River, 344, 345, 346, 347, 300.

INDEX

407

Songpan, town, 338.

Safeties, for suspected characters, 177,

189; in banking transactions, 280;

for Shansi bank clerks, 283.
SyceCt 234; coinage of, 280; bankers'

guild's regulations concerning, 286.
Szechuan, province, 18, 165, 341.
Bze Nau, town, 337.

Tael, definition of, 234; the unit of
weight of modem China, 300 ; stand-
ard weight of, 300-301 ; change from
dollar to, as unit, 305.

Tainzan-fu, coal in, 12.

Taiping rebellion, 11, 304, 305.

Taitzuho River, 355.

Taku, coat of salt at, 166.

Ta Lama Miao, the, 326-327.

Talc, in Shantung, 387.

Talienwan, railway from Newchwang
to, 375.

Tangshan, coal-mining in, 12-13.

Taotai (intendant of circuit), 39-40;
salary of, at Shanghai, 167; chop
of, 271-272.

Tartars, absotption of, by Chinese, 71.

Tating, town, 337.

Tatungkow, treaty port, 353.

Taxation, difference between theory
and practice in, 154-156, 174-175;
apportionment of, 156-157 ; mildness
of Manchu . dynasty in, 158 ; bad
results of slight, 158; rice crop the
basis of, 159, 171-173; official oor-
ruption connected with, 159-160, 163-
164, 169-170 ; revenue resulting from
(Sir Robert Hart's estimate), 160,
162; principal subjects of, 162; ex-
treme irregularities in, 169-171 ;
regulations relating to, of foreign
settlements at Shanghai, 198-199.

Taxes, capitation, 159; collection of,
159-160; amount ^alized from, 161,
162 ; ad mUericordiam allowance in
payment of, 300.

Tenants, land, 146-149.

T'ien K'i, Emperor, 32.

Tientsin, treaty port, 2, 351, 352, 353;
national bank at, 275 ; foreign con-
cessions at, 353; importance of, 359.

Tientsin-Kuyeh Railway, 361, 371.

Times (London) railway article, 309.

Tin, tn Yunnan, 18; black, in Hupeb,
337 ; in Shantung, 387.

T'ing Chao, polyandry in, 122.

Ti^ao. See Head-man.

Torture for extorting evidence, 179-
180, 190.

Trade, regulations for guarding moral-
ity of, 93-^; Roman, Greek, and
Arab, 222-223; river and coasting,
362-367.

Trademarks, 232. See Chop.

Trade routes, 311^-^18, 322-325, 328, 330,
332 ; Blackburn Commission's report
on waterways as, 343. See Rail-
way.

Trade-union, go-betweens', 235.

Trade-unions, 242-246. See Associa-
tions and Guilds.

Transportation companies, 230.

Treasury of Privy Purse, the, 60.

Treaties, bearing on likin tax, 165, 336,
343; relating to extra-territoriality,
193, 195-202.

Treaty, Anglo-Chinese (1858), 196;
Burma Frontier, 342 ; Rnsso-Chinese,
fixing Manchurian boundary, 349-
350; Sheng-HaoKay, 368; Rosso-
Chinese railway, 374-375.

Treaty ports, Chinese officials at, 39;
transfers of land at, 140-141 ; banks
at, 290; on Yangtse River, 335-341;
statistics of vessels registered at,
367.

Trusts, Chinese equivalent of, 246,
249.

Tseo Rao Ho River, 354.

Tsi, first coined money issued at,
292.

T'sin Shi Hwangti, " First Emperor,"
8-9, 292, 29&-297.

Tsitslhar, town, 347, 348.

Tso Chwen, the, 8.

Tsung-li Tamen, the, 48^49, 196.

Tsungyi, town, 337.

Tung Chow, town, 351, 352; railway
from, to Peking, 353, 372; railway
projected to Kaiping, 394.

Tung Chuan, town, 340.

Tung Kiang River, .356.

Tungting Lake, 336, 341.

Tunni River, 344.

" Two Kang" provinoet, 342.

408

INDBX

Unions. See Ttademnions.

United States, treaties between China
and, 1M-19B, 343; International Setr
tlement at Shanghai, 196 ; consular
courts of, 201-2Q2; rate of increase
of trade with China, 282; shipping
statistics of, dd5, 366 ; railway pro-
jects of, 380-381, 390-391, 393-394.

Uiga, Russians at, 328.

Ussuri railway line, 379.

Ussuri River, 344, 300; railway bridge
oyer, 379.

Viceroy, office of, 41-12.

Village, composition of, 34; responsi-
bility of, 34-35, 74-75, 177, 189.

Vladivostook-HarbaroYsk Railway,
378-380.

Volumes on government, official, 64-

Wade, Sir Thomas, 196.

Wai Wu Pv, name of Ttung^i TatMn
changed to, 49.

Wanping, coal-fields of, 12.

Warranto, salt, 166.

Water transport, 227-228, 331-368.

Waterways, neglect of, 48, 158, 816;
natural, 834-367; Blackburn Com-
mission quoted on, 343; artificial,
357-362; figures of traffic on, 362-
364.

Weighto, guild regulations concern-
ing, 210; history of, 296-298.

Weiho River, railway bridging over,
389.

Weihsien, 389.

Wei Wha chop, 273-274.

West River. iSse Canton Rhrer.

Wheelbarrow strike at Shanghai, 246.

Wheelbarrow transport, 228; oost of,
231.

Whipping, punishment by, 77, 78.

Whiskey, opportunities for production
of, 332.

Widows, remarriage of, 117-118; re-
main members of deceased hu^
band's family, 120; power of adop-
tion, 120; succession of, to property,
140.

Wife, only one, allowed, 112; selection
of, 112-113; husband's power to
degrade, 114-115; position of, in
household, 120; property of, be-
comes husband's on marriage, 120;
fate of a divorced, 121-122.

Williams, E. T., ^oted, 60-61, 78, 220,
319, 383, 334.

Wills, 144.

Wives, case where two are allowed,
120.

Women, selection of, for Imperial
harem, 45, 60.

Wong Kai-Kah, pamphlet by, on
banking, quoted, 276-283.

Wool production, 338, 340.

Woosung-Shanghai Railway, 370.

Wright, T. W., quoted on ^•"fc^'^g
customs, 282-283.

Wnchowf u, treaty port, 342.

Wuhu, bankers' guild, 284; trade of,
335, S«0.

Wukiang River, 387.

Wu Ti, Smperor, 14, 28^ 29, 309, 310.

Yalu River, 358; navigation of, 3S6;
valley of, 356-^57.

Fomen runners, 37, 200, 203, 204-2B5.

YamefUf in Manchuria, 53.

Yangtse River, 2, 4; navigability of,
334-335; towns situated on, and
tributaries, 335-341 ; Gorges of, 338.

Yarkand, roads from, 315.

Ten, 300. jSm Money.

Yin, definition, 166.

Yochow, projected railway to, 302.

Yuan River, 336.

Yu-Foo-Chee v. Bvans and Company,
case of, 270.

Yule, Sir Henry, 31.

Yung-lo, Emperor, 117.

Yun Ho. See Grand Canal.

Yunnan, provincei 4, 9, 10; metallic
deposito in, 17-18; disappearance of
trade roads through,312 ; gold in, 312.

Zend Avesta, Chinese history in the,
24-25.

Zinc, in Hupeh province, 887; in Shan-
tung, 887.

3 i- ■

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THE MASTERY OF THE PACIFIC

By ARCHIBALD R. COLQUHOVN

Amik^r if " Tkt Trmnt/armatim if CAima," S^MimJ Ca rrft/ mdt ni

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JAPAN

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